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Weil Gotshal Wind-Down Means 447K-SF Vacancy at GM Building
The widely reported winding-down of operations by law firm Weil Gotshal & Manges will mean vacant offices in 10 U.S. cities, but none will be as large as the firm’s headquarters space in Midtown Manhattan. The 447,000-square-foot space, roughly one-quarter of the office space at the General Motors Building, 767 Fifth Ave., is home to 584 professionals.
Headquartered at 767 Fifth since 1968, Weil is the 50-story tower’s largest tenant and accounts for $17.5% of its rent roll, Kroll Bond Rating Agency (KBRA) reported. The $121 per square foot that Weil pays is below-market for trophy properties in that part of Midtown, a point that landlord BXP’s president, Doug Linde, made on a call with analysts last week.
“There is a vast gap between where the in-place rent is at the GM Building and where we believe and perceive the market is,” Linde said.
KBRA reported, “The fact that Weil’s rent is not above market, combined with sound market fundamentals and the strong sponsorship of [BXP], suggests the landlord should be able to re-lease a portion or all of the space.”
- ◦Lease
