By Daniel Geiger
Grubb & Ellis has reached a deal to relocate to 1301 Sixth Avenue into space being subleased by the German financial institution Commerzbank, according to multiple sources.
Grubb & Ellis, which is currently located nearby at 1177 Sixth Avenue, is the latest in a succession of real estate brokerages to relocate or renew their offices.
At the top of the real estate leasing market in 2008, Cushman & Wakefield took 160,000 s/f for its headquarters at 1290 Sixth Avenue. Although rents are less now than they were then, the company was able to reduce the size of its office because of the efficiency of 1290’s floors, adding a level of savings to the deal.
Last year, CB Richard Ellis renewed its headquarters at 200 Park Avenue. Earlier this year, the tenant representation company Studley moved to 399 Park Avenue.
Jones Lang LaSalle, another real estate brokerage and services company, is said to be in the process of deciding what real estate decision to make for its own space. The company occupies floors at 601 Lexington Avenue with a near term expiration.
Grubb & Ellis will take a little over 60,000 s/f at 1301 Sixth Avenue, according to sources. The space is being subleased by a team from CBRE led by one of the company’s executives, Bruce Surry. In May, the law firm Dewey & LeBoeuf took another among the block of floors being offered by Commerzbank, each of which is roughly 60,000 s/f in size.
The floors bad once been occupied by the investment banking firm Dresdner Kleinwort, a subsidiary of Dresdner Bank. In 2008, Dresdner was acquired by Commerzbank, the second largest German bank behind Deutsche Bank, which decided to essentially shutter Dresdner Kleinwort’s operations, according to written reports, and sublease its space.
Grubb & Ellis executive managing director Joseph Swingle said he could not comment on any possible relocation by the company, which announced yesterday that its new valuation business, Grubb & Ellis Landauer Valuation Advisory Services, has opened for business at 1177 Sixth Avenue.
Swingle said the expansion wouldn’t create a need for more office space and was unrelated to any possible moves.
Grubb & Ellis Landauer Valuation Advisory Services in New York is one of 12 offices that will serve the appraisal needs of Grubb clients as it enters the valuation advisory business on a national scale. The New York office is under the direction of John Brengehnan, who said the Landauer office will add depth to the company’s already established appraisal presence here. Under the leadership of Robert Von Ancken, Grubb & Ellis has provided valuation services for over 25 years.
“With the significant changes taking place throughout the real estate industry, there is a critical need for best-in-class valuation advisory services,” said Douglas Haney, president of the new service, in a statement.
Paramount Group did not respond to a request for comment on the Grubb & Ellis lease.
Reporting was contributed by Roland Li.