FGS Global has signed a 15-year lease for 80,000 square feet at Penn 2, the recently redeveloped office tower owned by Vornado Realty Trust above Penn Station. The communications and consulting firm will occupy the entire 16th floor and part of the 17th floor. The asking rent for the space was $115 per square foot.
The company is relocating from its current office at Vornado’s 909 Third Avenue, where it occupies about 60,000 square feet. This move represents an expansion for FGS Global following its recent acquisition by private equity firm KKR. The new location brings FGS closer to KKR’s headquarters in Hudson Yards.
Penn 2 underwent a $750 million renovation last year, adding features such as a new glass curtain wall, terraces, and upgraded amenities designed to attract high-end tenants near major transit options.
Michael Liss of CBRE represented FGS Global in the transaction. Vornado was represented internally by Josh Glick and Jared Silverman, along with Cushman & Wakefield’s Josh Kuriloff and Bruce Mosler.
Representatives from both Vornado and FGS Global did not immediately respond to requests for comment.
The Manhattan office market is showing signs of stabilization, with Class A towers seeing increased occupancy. According to Cushman & Wakefield, the vacancy rate in the Penn Station submarket was around 19 percent at the end of the third quarter, lower than Manhattan’s overall rate of 22 percent.
Penn 2 has seen several recent leases as companies seek renovated properties close to mass transit. Last summer, Verizon signed a lease for 200,000 square feet with plans to relocate its headquarters to the building. Now known as Penn 2 (formerly 2 Penn Plaza), it is approximately 70 percent occupied. Other tenants include Madison Square Garden’s corporate offices, Major League Soccer, and Universal Music Group.
“FGS Global is taking 80,000 square feet at Vornado’s Penn 2. It signed a 15-year lease.”
“It is moving from Vornado’s 909 Third Avenue and expanding from 60,000 square feet after the firm was recently acquired by KKR.”
“It is moving to be closer to KKR’s headquarters in Hudson Yards. It will occupy all of the 16th floor and part of the 17th floor.”
“The asking rent on those floors is $115 per square foot.”
“CBRE’s Michael Liss represented FGS Global. Vornado’s Josh Glick and Jared Silverman represented the landlord in-house, along with a Cushman & Wakefield team led by Josh Kriloff and Bruce Mosler.”
