VTS Subleasing Space 3 Bryant Park After Salesforce Cutbacks
By Mark Hallum July 18, 2023 4:33 pm
reprints
Proptech firm VTS is picking up some office space from Salesforce at its eponymous Midtown tower.
VTS signed a six-year sublease with Salesforce to take 34,325 square feet at Ivanhoe Cambridge’s 1095 Avenue of the Americas, also known as 3 Bryant Park, according to subtenant broker Savills.
Asking rents in the deal were not disclosed, but Midtown saw an average asking rent of $79.85 in the second quarter of 2023, according to a report from Newmark. The VTS deal was first reported by The Real Deal.
VTS will relocate from 141 West 41st Street to occupy the entire 14th floor of 3 Bryant Park by the fourth quarter of this year. Salesforce, a cloud-based software company based in San Francisco, has leased about 300,000 square feet in the building and had it renamed Salesforce Tower in 2016.
However, times have changed. After a period of rapid growth, Salesforce announced in January it would reduce employees and cut office space spending $450 million to $650 million to reduce its current office footprint — and 10 percent of its staff — but did not disclose at the time what properties it would target.
“After an exhaustive search that included several submarkets, VTS identified 3 Bryant Park, a building in its current neighborhood, and a location that will remain central for all employees, as its new home,” Savills’s Jim Wenk, who represented the subtenant alongside Patrick Heeg of Transwestern and Sam Seiler of JLL (JLL), said in a statement. “VTS took advantage of favorable market conditions to secure an attractive package relative to direct pricing in the asset.”
Sacha Zarba, James Ackerson and Alice Fair of CBRE (CBRE) represented Salesforce in the deal.
CBRE, Transwestern and JLL did not immediately respond to requests for comment.
Mark Hallum can be reached at mhallum@commercialobserver.com.
