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Snap signs 199K SF sublease at Vornado's Penn 2 in Manhattan
The sublease runs through 2044, and the deal follows Manhattan’s tighter office availability, with sublease space down 26.4% year over year to 10.1M SF.
Vornado Realty Trust’s Penn 2 building in Manhattan is set to gain a new long-term tenant as Snap Inc., the parent company of Snapchat, signed a 199K SF sublease with Verizon, according to a July NYC office report cited by Bisnow.
The agreement gives Snap space across three of Verizon’s floors in the 31-story tower. The sublease runs through 2044, and Bisnow noted that it is unclear how much Snap is paying, but that average rents in the 1.6M SF building started at $109 per SF last year, citing Crain’s New York Business and other local coverage.
The deal lands as Manhattan’s office market tightens, with year-to-date leasing volume nearing 26.7M SF and rising 22.1% from the prior month, according to Bisnow. Colliers data cited in the roundup also showed average asking rents reaching the highest level since July 2020 at $78 per SF, while total office availability fell to 66.2M SF, its lowest since September 2020.
Bisnow’s recap also highlighted other notable NYC leasing activity, including the New York City Taxi and Limousine Commission signing a 39K SF lease at AmTrustRE’s 250 Broadway and Women’s apparel retailer Veronica Beard renewing and expanding its HQ by 15K SF at 26 W. 17th St.