Rudin Secures Full-Floor Lease in Times Square

February 28, 2024

Office Brokerage New York News More Northeast

A law firm signed for 10 years at the nearly 1 million-square-foot tower.

Rudin has signed a 27,667-square-foot, 10-year lease at 3 Times Square, a 950,000-square-foot office high-rise in Manhattan. Law firm Kilpatrick Townsend & Stockton LLP is expected to move to the entire 28th floor in the third quarter of this year. Cushman & Wakefield worked on behalf of both parties.

The 30-story high-rise came online in 2001. In 2020, the ownership announced plans for a $25 million capex program, which includes a full lobby renovation, a fitness center and a new tenant amenity floor featuring a dining area, coffee bar, conference and event center, along with the activation of outdoor space. FXCollaborative is the architect.

Two years later, the venture secured $415 million in refinancing for the Class A building from several lenders, including Bank of America and J.P. Morgan.

The transit-oriented skyscraper features floorplates ranging from 28,000 to 35,000 square feet, 16 passenger elevators, a food hall and a library, as well as 8,200 square feet of retail, according to CommercialEdge information. Tenants at the WiredScore Platinum-certified property include Rémy Cointreau, Chase Bank and Touro University, the latter signing a 245,000-square-foot, 32-year lease in January 2022. Last June, West Publishing Corp. signed a five-year lease extension for 46,105 square feet.

The tower is less than 1 mile from Rockefeller Center and the Empire State Building. Three Times Square is also within walking distance of One Grand Central Place, where ESRT recently signed a 57,203-square-foot leasing agreement.

Cushman & Wakefield Executive Vice Chair Mark Weiss and Executive Director Sam Hollis Jr. represented the tenant. Vice Chairs Ron Lo Russo and Lou D’Avanzo, Executive Vice Chairs John Cefaly and Mike Burgio, Chair John Santora, Executive Director Paige Engeldrum and Managing Director Dan Organ, along with Rudin Senior Vice President Thomas Keating worked on behalf of the ownership.

Earlier this month, Weiss also represented an insurance litigation firm in a 26,500-square-foot lease deal at One Battery Plaza in Lower Manhattan.

Manhattan sees lower asking rents, holds on

According to a CommercialEdge office report, Manhattan’s listing rate as of January clocked in at $68.3, almost double the $37.4 national average, even after dropping 9.9 percent year-over-year. The market’s vacancy rate last month was 16.5 percent, 150 basis point lower than the national figure.

Despite the general national slowdown, several leases made headlines since the beginning of 2024. In late January, Fisher Brothers landed a 95,000-square-foot lease expansion at Park Avenue Plaza, a 1.2 million-square-foot tower. Investment banking company Evercore is now occupying more than 500,000 square feet across multiple floors. A few days later, Mill Point Capital Partners and YMCA Retirement Fund committed to a total of 47,929 square feet at Silverstein Properties’ 1177 Avenue of the Americas, a 1 million-square-foot high-rise.