The commercial real estate services and investment company CBRE Group Inc. (NYSE: CBRE) and the hedge fund Citadel LLC have signed significant office leases in historic Manhattan properties.
CBRE announced it will establish a global financial headquarters at Lever House, the landmark Park Avenue office property. The company will lease 64,350 square feet of contiguous space on six floors – four floors will house CBRE Investment Management’s headquarters operations while the remaining two floors will be dedicated to a flex workspace operated by the coworking firm Industrious that will be targeted to senior executives. CBRE acquired a 35% stake in Industrious in 2021 and will collect the profits from the new flex space.
CBRE expects to occupy the Lever House space in the fourth quarter of this year, while its global corporate headquarters will continue to be in Dallas.
“Lever House is a premier address that will help us to attract top real estate finance talent,” said Bob Sulentic, CBRE’s chairman and CEO. “It’s located in the heart of Midtown’s financial district and is a convenient walk to 200 Park, which has been the hub of our New York operations for more than 30 years. The floors overlooking a landscaped third floor atrium will enable us to create a compelling workplace experience, and we are excited to be entering into this first-of-its-kind operating model with Industrious.”
Separately, Ken Griffin’s hedge fund Citadel is taking a 500,000-square-foot space at 660 Fifth Avenue. The property opened in 1957 as the Tishman Building.
However, will probably not be a long-haul home for the company. Citadel, along with Rudin Management and Vornado Realty Trust, is planning a 51-story office building at 350 Park Avenue which will become its new headquarters. But that new building is not expected to be completed until 2032.
Citadel is currently based at the existing 350 Park Avenue, which will be demolished and replaced with the proposed new building. Citadel is expected to relocate to the Fifth Avenue location later this year.
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