Law firm Holwell Shuster & Goldberg LLP (HSG) has subleased 59,750 s/f from AmLaw 100 firm Simpson Thacher & Bartlett LLP at 425 Lexington Avenue for 16 years.
Savills Studley brokered the deal for HSG, which launched its search for new larger offices in the fourth quarter of 2016, two years prior to its current sublease expiration date.
HSG’s brokers, L. Craig Lemle and Nick Zarnin, recognized early on that the best solution for HSG would be to take advantage of the consolidation occurring within the law firm community.
At the beginning of the space discovery process, Lemle and Zarnin found out that Simpson Thacher would make a few practice floors available for long-term sublease. The next day, the HSG partners viewed the available floors and, shortly thereafter, Lemle and Zarnin secured a favorable rent with a substantial concession package in an off-market transaction.
“HSG wanted built, fully furnished law firm space in Midtown for its rapidly growing practice,” said Zarnin. “By starting the search early, we were able to find a space that checked all the boxes and will allow HSG to grow into a premier office building at an attractive rent.”
“While the majority of the legal industry is downsizing, HSG stands as a rare example of growth,” said Lemle. “Many law firms are consolidating their real estate footprints to smaller, more efficient layouts in an effort to reduce costs, and this particular consolidation presented an incredible opportunity for HSG.”
HSG will relocate from 750 Seventh Avenue at the end of the year, nearly doubling its footprint. It will occupy the 12th, 13thand 14th floors of 425 Lexington, a 31-story trophy building that is 100 percent leased by Canadian Imperial Bank and Simpson Thacher, original tenants when the building was developed in 1987.
The sublease space from Simpson Thacher is the only space to become available since then.