NYU Langone Medical Center Renews 633K SF Lease at One Park Avenue

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New York University has renewed its lease for the Langone Medical Center at One Park Avenue, according to landlord Vornado Realty Trust. The owner mentioned the renewal on its Nov. 3 earnings call.

NYU will renew 633,000 square feet at the 20-story property, located between East 32nd and East 33rd streets. In 2018, the hospital and medical center expanded its existing footprint at the property, adding 150,000 square feet to arrive at its current total, which constitutes about two-thirds of the 947,000-square-foot property, as Commercial Observer reported at the time.

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The NYU deal was the second largest deal for Vornado in the third quarter, after closing with Facebook on a 730,000-square-foot lease at the Farley Building. Vornado plans to deliver the property to Facebook before year’s end, per the call. 

Vornado CEO Steve Roth said on the call that the office leasing market remains on pause, and he expects to see mostly renewals through year’s end. However, he said he expected a return to normalcy from COVID to be in “months, not years.” 

Portfolio-wide, Vorando’s rent collection in the third quarter stood at 95 percent for office rents, and 82 percent for retail, excluding deferred rents, which are expected to be paid back within a year, per the call. 

On the retail front, Vornado executed a total of 25,000 square feet in the third quarter, including a lease with Giorgio Armani‘s Madison Avenue flagship, an indication that New York’s high-street retail will endure, said Vornado President Michael Franco.