Fintech company Current has signed a 10-year lease for more than 62,000 square feet at Penn 2, the recently redeveloped office tower owned by Vornado Realty Trust above Penn Station. The Real Deal reports that the asking rent was $125 per square foot for space on the building’s 23rd floor.
Current will be moving from its previous location at RXR’s 620 Sixth Avenue, where it leased about 72,000 square feet in 2023. A spokesperson for Current declined to comment on the new lease agreement.
Vornado has been increasing its leasing activity at Penn District properties. During an earnings call, Steven Roth, chairman and CEO of Vornado Realty Trust, said: “it’s clear that the tipping point … is now behind us.” Penn 2 underwent a $750 million renovation designed to attract major tenants. The building now stands at 78 percent leased.
Adam Henick and Rob Kluge of Current Real Estate Advisors represented Current in this transaction. Vornado was represented internally by Josh Glick and Jared Silverman, along with Bruce Mosler and Josh Kuriloff from Cushman & Wakefield.
The Manhattan office market is showing signs of stabilization as Class A towers see increased leasing activity. According to a Cushman & Wakefield report, the vacancy rate in the Penn Station submarket was approximately 19 percent at the end of the third quarter, compared to Manhattan’s overall office vacancy rate of 22 percent.
Recent deals at Penn 2 reflect growing interest in renovated properties near transit hubs. FGS Global recently signed a 15-year lease for 80,000 square feet at the building. Last summer, Verizon agreed to lease 200,000 square feet with plans to relocate its headquarters there. Other notable tenants include Madison Square Garden’s corporate offices, Major League Soccer, and Universal Music Group.
