Posted Nov 28, 2008, 2:15 PM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 57,194
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Quote from the Times regarding that:
Quote:
http://www.nytimes.com/2008/11/10/nyregion/10office.html?ref=business
Metropolitan Life Insurance, whose name is now in block letters over the tower’s front doors, quietly began shopping for tenants to sublease 100,000 square feet of its space in the building, a quarter of what it signed up for in 2006.
The problems at 1095 Avenue of the Americas are not hurting Blackstone so far. The combined unused space of Centerline, MetLife and iStar accounts for roughly one-third of the 1.06 million square feet owned by Blackstone in the building, and the three companies are obligated to pay full rent even if they are unable to sublease the space. Brokers say that Blackstone would require the companies to pay dearly to break their leases.
MetLife’s average effective rent, for floors in the middle and at the top, is about $100 a square foot, or $40 million a year, according to real estate executives familiar with the deal.
The insurance giant had moved most of its New York employees to Long Island City in 2002, where rents were as low as $30 a square foot. But in 2006, MetLife reversed course, signing a lease to move about 1,300 employees from Queens into the former Verizon building.
But this year, the company reassessed how many employees were actually in the office at any one time and determined that it needed only 9 of the 12 floors it had leased in the tower.
So early next year, MetLife plans to formally market three of its floors, said John Calagna, a spokesman for MetLife.
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