Global investment company KKR will be increasing its footprint at its Manhattan headquarters. The firm — which already occupies approximately 300,000 square feet of space at 30 Hudson Yards — signed a lease deal for an additional 200,000 square feet to move into the office space that social media giant Meta recently vacated. Joe Messina and Steven Rotter of JLL conducted the negotiations on behalf of the tenant.
The move will allow KKR to eventually shift some of its staff from the company’s three other offices in New York and into its expanded headquarters. KKR has been invested in the building for some time now, beyond its existing lease agreement. In 2021, the company bought a majority stake in the observation deck at 30 Hudson Yards (which currently holds the record as the highest platform in the Western hemisphere) for more than $500 million.
The 2.6-million-square-foot, Related-owned skyscraper already houses the likes of Wells Fargo and WarnerMedia. The latter is the building’s largest tenant at the moment with a footprint of 1.4 million square feet of office space.
The private equity firm’s expansion coincides with a number of important shifts in the New York office market. As part of a wider effort to downsize and consolidate its office portfolio across the U.S., Meta spent roughly $413 million terminating leases in the third quarter of 2022, with an additional $900 million directed toward office realignment in the fourth quarter. Likewise, other tech companies — which had been the major driving forces behind office development in recent years — have also taken a more cautious stance amid layoffs and increasing costs of borrowing.
It’s not all bad news, though, as the post-pandemic shakeup has created an opening for some firms in the finance and legal sectors. For instance, last month, Ken Griffin’s Citadel unveiled plans for a new high-rise in Manhattan, while hedge fund D.E. Shaw and private equity shop Blue Owl Capital Inc. have also been busy signing new leases.
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Last modified: January 16, 2023