Office tenants in today’s challenging market aren’t only interested in brand-new towers when seeking quality. The concept of “flight to quality” extends to properties built in the 20th Century that have undergone extensive reinvestment, making them “new” once again.
Vornado Realty Trust recognized the potential of the once-obsolete office tower located on Seventh Avenue between West 31st and 33rd streets. They invested a whopping $450 million to redesign and reposition the 1970s-vintage, 2.5-million square-foot property, now known as PENN 1.
The transformation of PENN 1 has paid off, as new office leases continue to pour in. According to sources, the building recently secured its largest financial services lease since the redevelopment project began. Canaccord Genuity Group signed a lease for 75,000 square feet on two floors.
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