Virgo Business Centers Renews 41K-SF Office at 1345 Avenue of the Americas
By Isabelle Durso September 5, 2024 12:24 pm
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Shared office space provider Virgo Business Centers is staying at Fisher Brothers’ 1345 Avenue of the Americas for another 11 years.
Virgo signed a 40,779-square-foot renewal for the entire second floor of the 50-story office tower, according to brokers CBRE (CBRE).
CBRE declined to disclose the asking rent, but a report from Newmark found office rents in Midtown averaged $79.55 per square foot during the second quarter of 2024. When Virgo last signed a sublease in the building in 2018, asking rent was $79 per square foot, as Commercial Observer previously reported.
“Demand for flexibility is growing in the current office leasing environment, and flex space continues to play an important role in occupier strategy,” CBRE’s Anthony Dattoma, who brokered the deal for Virgo, said in a statement. Dattoma did not immediately respond to a request for further comment.
CBRE’s Peter Turchin, Howard Fiddle, Bill Iacovelli, Ben Joseph and Gregg Rothkin negotiated the lease on behalf of Fisher Brothers, which was also represented in-house by David Cheikin, Marc Packman, Clark Briffel and Josh Fisher.
Fisher Brothers declined to comment. A spokesperson for Virgo did not immediately respond to a request for comment.
Virgo moved into the building in 2013 after subleasing the entire second floor from AllianceBernstein, as CO previously reported.
The company doubled its presence at the office tower in 2018 after signing a sublease for 42,054 square feet for the entire 33rd floor, with the deal set to run through the end of 2024, CO reported. That transaction took Virgo’s total footprint at the property to nearly 83,000 square feet.
It will now just keep the second floor and move to a direct deal with the landlord, according to CBRE.
The shared office provider has more than 200,000 square feet of space across five locations in New York City: 575 Lexington Avenue, the Chanin Building at 380 Lexington Avenue, the Empire State Building, 14 Penn Plaza and 1345 Avenue of the Americas.
Other tenants at 1345 Avenue of the Americas include investment management firm AllianceBernstein, private equity firm Fortress Investment Group and investment firm Global Infrastructure Partners.
The 2 million-square-foot Midtown tower between 54th and 55th streets underwent a $120 million renovation in 2021, which included a new lobby and elevators, a redeveloped outdoor plaza, and a 20,000-square-foot amenity center, according to CBRE.
Isabelle Durso can be reached at idurso@commercialobserver.com.
