Law Firm Covington & Burling Sublease 235K SF at 30 Hudson Yards
By Mark Hallum June 10, 2024 1:18 pm
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Warner Bros. Discovery is subleasing more of its massive 30 Hudson Yards office footprint.
Law firm Covington & Burling signed a 20-year deal to take 235,479 at Related Companies and Allianz’s Hudson Yards building, expanding from its 200,000-square-foot office at 620 Eighth Avenue, according to a source with knowledge of the deal.
Related did not immediately respond to a request for comment, but the source said asking rent was $112 per square foot. The New York Post first reported the deal.
Convington will first sublease the space from Warner and then move to a direct deal when Warner’s lease runs out in 2034, according to the Post.
CBRE (CBRE)’s Robert Alexander, Anthony Manginelli, Taylor Callaghan and Ryan Alexander represented Warner in the deal, according to the Post, while Savills’ Matthew Barlow, Steve Barker and Jeffrey Peck negotiated on behalf of Covington.
CBRE declined to comment while Savills did not immediately respond to a request for comment.
The law firm signed its deal just days after Pennsylvania-based trading firm Susquehanna International Group agreed to take over 73,735 square feet of Warner’s total 1.5 million square feet in the building, a full floor sublease that will expire in 2034 when the subtenant will move to a six-year direct deal with the landlords, Commercial Observer previously reported.
Susquehanna is expanding from 54,412 square feet at 140 Broadway.
Warner Bros. Discovery, a media company formerly known as WarnerMedia, bought the office condominium from Related in 2014 before Related bought it back for about $2.2 billion in 2019 with Allianz taking a 45 percent stake, as CO previously reported. It was leased back to Warner with a termination in 2034.
Then, AT&T sold WarnerMedia to Discovery in 2022 and put about 450,000 square feet of the building on the sublease market.
Mark Hallum can be reached at mhallum@commercialobserver.com.
