New Deals Highlight Hudson Yards’ Modern Appeal Amid Warner Bros. Discovery’s Space Shake-Up
Two recent deals at 30 Hudson Yards continue to demonstrate the growing preference by tenants for newer buildings versus older ones. Warner Bros. Discovery (WBD) — the largest tenant at the 2.6-million-square-foot Midtown Manhattan property — has been consolidating its operations following the merger of AT&T’s Warner Media with Discovery. As a result, up to 310,000 square feet of its 1.4 million square feet at the property were freed and quickly snatched up by new tenants.
Trading firm Susquehanna International Group has agreed to sublease approximately 74,000 square feet from WBD at 30 Hudson Yards. The investment trading company will occupy one floor after relocating from 140 Broadway in downtown Manhattan, where it currently occupies 54,000 square feet.
In addition, law firm Covington & Burling has agreed to sublease just more than 235,000 square feet from WBD at a rent of $112 per square foot. Covington & Burling will be expanding from its current 200,000-square-foot office at 620 Eighth Ave. (The New York Times Building), which it will vacate next year. Both deals include a sublease period from WBD before transitioning to a direct lease once WBD’s lease expires in 2034.
WBD initially purchased the office condo from Related in 2014, before Related bought it back with Allianz in 2019. AT&T sold WarnerMedia to Discovery in 2022, leading to the subleasing of about 450,000 square feet at 30 Hudson Yards. Despite the subleasing activity, WBD still maintains the largest presence in the tower with five floors totaling 300,000 square feet for CNN. Other corporate occupants of 30 Hudson Yards include KKR, Wells Fargo and Related’s own headquarters, all of which own their spaces as condo units.
Along with the lease deals, Related plans to redesign the tower’s ground-floor lobby; sky lobby; and other amenities, including a previously unused, high-floor, outdoor terrace.
CBRE represented WBD with a team of Robert Alexander, Anthony Manginelli, Taylor Callaghan and Ryan Alexander. Newmark’s Brian Goldman, Ross Perlman and Matthew Lorberbaum acted on behalf of Susquehanna International Group. Savills’ Matthew Barlow and Steve Barker represented Covington & Burling.