Leases  ·  Office

Accounting Firm Hertz Herson Moving to 575 Lexington Avenue


Accounting firm Hertz Herson will move its offices within Midtown to 575 Lexington Avenue, Commercial Observer has learned.

Hertz Herson signed a 12-year lease for 9,763 square feet on the entire 34th floor of the 35-story building between East 51st and East 52nd streets, a spokesperson for the landlords said. 

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Asking rents for the tower floors of the property — which is owned by a joint venture between Angelo Gordon & Co., George Comfort & Sons and a fund managed by a subsidiary of Columbia Property Trust — range from the low- to mid-$80s per square foot, a source with knowledge of the deal said.

Hertz Herson was founded in 1931, and is currently located at 477 Madison Avenue. It plans to move to 575 Lexington in the fourth quarter of this year.

“We are pleased to welcome Hertz Herson and know that its esteemed professionals will benefit from 575 Lexington’s contemporary environment and inspiring views,” Peter Duncan, president and CEO of George Comfort & Sons, said in a statement. “With market activity picking up, it’s no surprise that it is generating increased interest.”

CBRE (CBRE)’s Michael Wellen and Stephen Siegel represented Hertz Herson in the deal. Ben Shapiro, Alex Leopold, Michael Shenfeld and David Falk of Newmark handled it for the landlords.

“Hertz Herson exemplifies the type of tenant ownership pursues for 575 Lexington Avenue,” Shapiro said in a statement. “A best in class professional services firm that prioritized a distinctive prebuilt, full floor space in a great location. We are excited to welcome them to the building.”

Other tenants in the 745,000-square-foot 575 Lexington include Weill Cornell Medical College, WeWork and law firm Warshaw Burstein.

“This lease is a great outcome for Hertz Herson: They will be able to optimize their footprint and reduce their run rate while meaningfully improving the qualitative aspects of their occupancy,” CBRE’s Wellen said in a statement.

Update: The story’s been updated to include quotes from the CBRE and Newmark brokers.