Investor Dan Loeb’s Third Point is seeking to sublease some or all of its Manhattan headquarters space, taking advantage of the demand for offices in newer buildings.
(Bloomberg) — Investor Dan Loeb’s Third Point is seeking to sublease some or all of its Manhattan headquarters space, taking advantage of the demand for offices in newer buildings.
Loeb’s hedge fund recently listed its 89,000 square feet (8,268 square meters) across the top three floors of 55 Hudson Yards, a newly built skyscraper on the far west side, according to CoStar Group Inc.
Third Point committed to the space in 2017, with a lease that runs through July 2029. The firm had been looking to sublease at least half a floor for the past three years, according to a person with knowledge of the matter. After finding no takers, Third Point now is open to leasing out a larger space — as much as the entire three floors, said the person, who asked not to be named discussing private information.
The listing doesn’t mean that Third Point is seeking to leave Hudson Yards, according to the person.
A spokesperson for Third Point declined to comment.
Asking rent for the space is about $165 a square foot, people with knowledge of the plans said. That’s more than double the average for Manhattan, and higher than the $130 a square foot that Third Point paid for its lease, according to CoStar.
With the higher asking rent, Third Point is looking to capitalize on demand for offices in newer towers. While older Manhattan buildings have struggled with growing vacancies and declining rents, tenants have been willing to pay a premium at developments such as Hudson Yards.
Third Point relocated to 55 Hudson Yards from the Lever House, at 390 Park Ave. in Midtown.
Other tenants at the skyscraper include Steve Cohen’s Point72 Asset Management and Meta Platforms Inc., Facebook’s parent. The company declined an option to renew its lease at the building after it expires next year, but it’s keeping space elsewhere at Hudson Yards.
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