EmblemHealth signed a large long-term lease for a residence at 55 Water Street prior to the pandemic. It is transferring some of that space to a subtenant.
Transportation technology company Verra Mobility leases 57,000 square feet in the Financial District building, the Commercial Observer reported. The 10-year agreement gives the company a new headquarters in Northeast, which was temporarily located on Broad Street.
Charging rent for the space on the second floor of the building – owned by the Retirement Systems of Alabama – was not disclosed. According to CBRE, the average asking rent in Lower Manhattan during the third quarter was $57.95 per square foot.
Ira Rovitz, Chris Ventura and Rohan Kapoor of Newmark represented Verra, while Paul Haskin of CBRE represented EmblemHealth, formerly known as the Health Insurance Plan of Greater New York.
In May 2019, EmblemHealth leased 40,000 square feet over 13 floors in a 15-year extension of the building. The deal came a year after the company reportedly considered leaving the building and subleasing the space.
The 53-story building was home to a number of major lease deals this year. In April, telecommunications service provider MetTel expanded to 69,000 square meters. Two months later, engineering firm Jaros, Baum & Bolles signed for 68,000 square meters.
In April 2022, nonprofit health care system MJHS signed a lease for more than 138,000 square feet, at the time the largest new lease in Lower Manhattan in an 18-month span, according to CBRE.
Sublet supply — a pandemic-era albatross — has fallen nearly 40 percent in two years and is back to pre-pandemic levels, according to a monthly office report from Colliers.
Tenants occupied 9.4 million square feet in the third quarter, up 2 percent from the second quarter and nearly 27 percent higher than the five-year quarterly average. Rental volume also exceeded 30 million square meters for the year, exceeding pre-Covid levels and marking the strongest period of demand to date since 2002.
— Holden Walter Warner
Read more
The health system’s FiDi lease is the largest in Lower Manhattan in 18 months
EmblemHealth will remain located at 55 Water Street
The office market in Manhattan is on the attack again
#EmblemHealth #subleases #57K #FiDi