Brookfield has extended its ground lease for Brookfield Place in Battery Park City by an additional 50 years, according to a report from Crain’s. The new agreement with the Battery Park City Authority means the lease will now expire in 2119.
Under the terms of the extension, Brookfield has agreed to increase its ground-rent payments. These higher payments are projected to generate $1.5 billion for both New York City and a joint fund that supports affordable housing initiatives throughout the city. Last year, government officials announced a $500 million investment in this same fund.
The extension also includes several commitments from Brookfield aimed at environmental and community improvements. The company has pledged to work toward reducing emissions, targeting net-zero emissions by 2050. In addition, Brookfield will contribute up to $2.5 million for enhancements along West Street and will allocate 10,000 square feet of office space within Brookfield Place for use by nonprofit and community organizations.
“This agreement not only ensures the stability of Battery Park City while building and preserving more affordable homes throughout New York City — it also uplifts the city’s economy with the continued lease to Brookfield Place,” Gov. Kathy Hochul said in a statement.
Darcy Stacom and CBRE’s Eric Negrin advised the Battery Park City Authority during negotiations on the new lease terms, while David Heller and Mark Todrys of Savills represented Brookfield.
Office rents at Brookfield Place currently range from $53 to $65 per square foot, according to CoStar data. Brookfield originally acquired the complex in 1992 after Olympia and York filed for bankruptcy and has invested approximately $900 million in upgrades over the past decade.
In early 2025, Jane Street Capital expanded its offices at 250 Vesey Street within Brookfield Place to nearly 1 million square feet after adding about 400,000 square feet to its existing footprint. Other notable tenants include Royal Bank of Canada and Jones Day. Scotiabank currently leases 131,000 square feet but is expected to relocate to another property owned by Brookfield at 660 Fifth Avenue.
