One and Two Manhattan West. Architectural rendering courtesy of Brookfield.Cravath in Talks for Manhattan West Move Amid Law Firm Real Estate Flurry
Cravath is looking to lease at least 450,000 square feet in its next office, a little less than its current office usage.
May 29, 2019 at 06:02 PM
3 minute read
It's shaping up to be a busy real estate year in New York, as some elite firms in the city, including Cravath, Swaine & Moore and Debevoise & Plimpton, have zeroed in on new offices, while others are starting their real estate search.
Cravath is in serious discussions with Brookfield Property Partners for office space at Two Manhattan West, a tower not yet built at 31st Street and 9th Avenue but expected to be completed by 2023, according to two sources. The firm's office lease at 825 Eighth Ave. expires in 2024.
The deal is far from being finalized and Cravath could be months away from completing a lease. Still, one source familiar with the matter said Brookfield and Cravath have completed a term sheet, while another source said Cravath's discussions with the landlord at Two Manhattan West are further along than with any other place. The firm is expected to announce its next office location later this year.
Cravath has been at Worldwide Plaza since 1989 and, according to a 2013 Morningstar ratings report about the building, the firm has leased about 617,135 square feet, paying an estimated $54 million in annual base rent.
However, the firm sublets to a few businesses, including McCarter & English, and its actual office space use is about 540,000. The firm is looking to lease at least 450,000 square feet in its next office, a source said.
The New York Post first reported on Cravath's interest in Two Manhattan West, part of the Hudson Yards area of Manhattan and a building that would be about 18 blocks south and one block west of the firm's current building. The Post also reported on Amazon's interest in the same building.
A Cravath spokesman declined to comment, while a Brookfield representative did not immediately return a message for comment.
Cravath's potential neighbors would include Skadden, Arps, Slate, Meagher & Flom and McKool Smith, who plan to move into new offices in the neighboring office tower at One Manhattan West.
Meanwhile, Debevoise is close to signing a lease at nearby 50 Hudson Yards, said a source knowledgeable about that deal, signaling the firm is much farther along in finalizing a new office deal than Cravath. ALM reported on Debevoise's interest in Hudson Yards last year.
A Debevoise spokesman declined to comment.
Milbank, Boies Schiller Flexner and Cooley all moved into a nearby tower at 55 Hudson Yards earlier this year.
Other law firms are beginning a real estate search now. For instance, Shearman & Sterling, Dechert and Quinn Emanuel Urquhart & Sullivan, among others, have entered the market, possibly looking for new office space.
The active market follows another busy year for law firm office moves in 2018 as concessions from landlords have driven law firm relocations across the city.
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