Snapchat Parent Company Subleases 199K SF From Verizon at Penn 2

Snap, the technology firm behind Snapchat, is taking over Verizon’s three-floor office lease in Manhattan’s Penn District. 

The 198,983-square-foot sublease spans the eighth through and 10th floors of Vornado Realty Trust’s 2 Pennsylvania Plaza, known as Penn 2, according to sources familiar with the transaction. The long-term deal, struck at a premium to Verizon’s own rent obligation, runs through 2044.

It is unclear whether Snap plans to relocate from its offices at 229 West 43rd Street, where its 26,000-square-foot lease is set to expire in June 2027, or if the Penn 2 lease represents a second office. Following the sublease deal, Verizon will consolidate into its existing offices in New York City, which include a corporate headquarters at 1095 Avenue of the Americas.

Cushman & Wakefield’s Josh Kuriloff, Heather Thomas, Peyton Horn and Kyle Ernest represented Verizon in the negotiations, while Snap was represented by C&W’s Ethan Silverstein, Amy Zhen and Bianca Di Mauro. C&W declined to comment on the deal.

Verizon arrived at the three-floor spread in July 2025, CO previously reported, executing a 10-year lease with Vornado. A spokesperson for Vornado declined to disclose additional details on the sublease, including rent terms. Class A office asking rents in the submarket around Penn Station averaged $122.90 per square foot in the second quarter of 2026, according to C&W data.

Office sublet availability in Manhattan has contracted by more than 26 percent over the past year to its lowest level since August 2019, according to Colliers’ July market report, which first cited the sublease. 

Penn 2 itself is more than 90 percent leased, according to Vornado, following more than $2.5 million in upgrades to its Penn District properties. 

Spokespeople for Snap and Verizon did not immediately respond to requests for comment.

Emily Davis can be reached at edavis@commercialobserver.com.