HR Tech Firm Gusto Expands to 76K SF at Vornado’s Penn 1

Human resources technology company Gusto has doubled its footprint at Vornado Realty Trust’s 2.5 million-square-foot Midtown office tower Penn 1, also known as 1 Pennsylvania Plaza. 

The deal includes a 13-year lease expansion that added 38,000 square feet across the tower’s 47th floor. The company also opted for a five-year renewal of its 52nd-floor lease, which also spans 38,000 square feet, bringing its total footprint at the building to 76,000 square feet. The Real Deal first reported on the deal. 

Asking rent was $135 per square foot. CBRE’s Jeff Fisher, Sacha Zarba and Conor Krup negotiated the deal on behalf of Gusto, while Vornado’s Josh Glick, Jared Silverman and Anthony Cugini represented the landlord in-house. 

Penn 1, Vornado’s largest office tower in its popular Penn District, underwent a $450 million building-wide renovation in 2023, adding more than 160,000 square feet of amenities, including a restaurant and a 35,000-square-foot wellness and fitness center. The 55-story tower’s asking rents far exceed Midtown’s average office asking rent of $85.55 per square foot in August, according to CBRE data. 

Penn 1 tenants include high-profile firms like electronics giant Samsung, which doubled its footprint there last year, as well as technology company Dell, insurance provider United Healthcare, and financial firms Morgan Stanley and Wells Fargo. 

Gusto, Vornado and CBRE did not immediately respond to  requests for comment.

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