Accounting Firm Weaver and Tidwell Upsizes Penn 1 Lease, Consolidates NYC Workforce
By Amanda Schiavo September 27, 2024 11:52 am
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Vornado Realty Trust (VNO) has inked a large office lease expansion with a national accounting firm at its Penn 1 property, the real estate investment trust announced Thursday.
Weaver and Tidwell, which previously occupied 8,000 square feet at Penn 1’s 32nd floor, will now encompass 36,500 square feet on the 28th floor of the 55-story building, according to Vornado.
The 11-year lease highlights Weaver continuing to grow its presence in New York City, where it found the developments made at the Penn 1 property particularly attractive, Weaver CEO John Mackel told Commercial Observer.
Asking rent was $105 per square foot, according to a source familiar with the deal. Vornado handled the deal in-house via Josh Glick, Jared Silverman and Anthony Cugini while Neil Goldmacher and Michael Horn of Newmark (NMRK) represented Weaver. A spokesperson for Newmark declined to comment.
The move is part of Weaver’s plans to consolidate its whole New York City workforce into Penn 1, including the employees previously located at the company’s 500 Fifth Avenue office, according to the firm. The accounting firm got a Penn 1 presence in January after it merged with Buchbinder Tunick & Company, which has been a tenant at Penn 1 since 1997, according to Vorando.
Mackel said Weaver is planning to sublease its Fifth Avenue location.
The consolidated workforce, which Mackel said operates on a three-day hybrid in-office schedule, began operating out of Penn 1 on Aug. 1, the source said.
“We’re really just making the investment to pull everybody together into one office, which we think is just going to be better for growth and culture, and that’s where we want to be long term,” Mackel said. “It’s a big move.”
Vornado has been making investments in the Penn District, even as it pulled back on some development plans in the neighborhood. That includes the construction of a two-building connecting campus with neighbor Penn 2 encompassing 4.4 million square feet of office space, including 180,000 square feet of what the company dubs “work-life amenities” that are available to all the retail and office tenants in the district.
“Weaver’s decision to relocate its New York team to Penn 1 validates everything we have accomplished in the Penn District,” Glen Weiss, Vornado’s executive vice president, said in a statement announcing the lease. “We continue to experience strong tenant interest since completing the Penn 1 transformation, rolling out our work-life amenity program, and delivering on a wide range of dining, retail and public realm improvements throughout the Penn District.”
Despite this news, Vornado’s stock was trading in the red on Friday morning, although the stock has been outperforming its peers in the industry over the last three months, according to Zacks.
