Gannett Moving NYC Corporate Offices to 24K SF at 1675 Broadway
By Nicholas Rizzi February 25, 2021 11:57 am
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Media conglomerate Gannett Co. will move its New York City corporate offices to 24,195 square feet at the Rudin family’s 1675 Broadway in the Theatre District, brokers on the deal announced.
Gannett signed a 10-year sublease for the entire 23rd floor of the 35-story tower between West 52nd and West 53rd streets, according to sublandlord brokers CBRE (CBRE). Asking rent was in the mid-$60s per square foot. By comparison, the average asking rent for directly available Midtown office space in the fourth quarter of 2020 was $82.29 a foot, according to Colliers International.
A spokesperson for CBRE declined to name the sublandlord, but CoStar Group data shows that it’s marketing giant Publicis Groupe. Publicis vacated about 545,000 square feet in 1675 Broadway when it took 960,000 square feet at 375 Hudson Street in 2019, as Commercial Observer previously reported.
Virginia-based Gannett, which owns more than 100 newspapers nationwide, including USA Today, currently has its NYC offices at 1633 Broadway and plans to move to its new digs next month, according to CBRE.
“Despite the challenging office leasing environment due to the global pandemic, opportunities abound for tenants seeking move-in ready space at very attractive overall economics,” CBRE’s Gregg Rothkin said in a statement. “The Gannett deal speaks to this trend perfectly; the availability at 1675 Broadway is a unique example of high-quality, state-of-the-art, plug-and-play sublease space with the capacity to accommodate tenants of various sizes and industries.”
Sublease space has been on the rise in Manhattan during the coronavirus pandemic and comprises its highest share of the borough’s office market since 2009, a glut of space that’s dragging down rents.
CBRE’s Rothkin, John Maher, Paul Myers, Mike Wellen, Alex Benisatto and Cara Chayet represented the sublandlord in the Gannett deal. Gordon Ogden and Nick Gilman of Byrnam Wood handled it for Gannett.
Ogden and Gilman did not immediately respond to a request for comment.
The Gannett deal marks the second block of Publicis space CBRE has offloaded in the building. Last year, financial compliance consultancy Exiger Holdings signed a 30,900-square-feet sublease for space on the 15th and 16th floors of the 800,000-square-foot property.
