Deutsch Inc., the famous ad agency founded by Donny Deutsch, has reportedly signed an agreement to lease office space at 330 W. 34th St. in Penn Plaza, New York City, moving from its current location - the Google-owned 111 Eighth Ave.
The move comes years after Deutsch resisted a move from its current location. Ever since Google purchased the humongous 2,900,000-square-feet building for $1.9 billion in 2010, it has been buying out most tenants in the building to expand.
At that time, Google reportedly started negotiating with Deutsch to buy out its 100,000-square-foot space but the talks broke down and the ad company went on to renew its lease in the building, which runs until 2018.
"It was Google's decision not to do the deal. Deutsch got so greedy and Google realized there will be many people they will have to buy out and they wanted to send them all a message. They're not going to roll over," an insider told The Commercial Observer at that time. However, another source - the landlord - said that it was Google that got greedy.
But, looks like Deutsch finally gave in. The New York Post broke the news that the ad agency was moving to lease two floors at the Vornado Realty Trust-owned structure near Hudson Yards.
The company has reportedly signed a lease to occupy 74,346 square feet of prime office space on the 13th and 14th floors of the tower. Citing data from CoStar, the Post reports that the 13th floor has a terrace as well.
Hank Kobrin and Rob Silver of Newmark Grubb Knight Frank represented Deutsch in the deal, while Vornado repped itself.
The move is good news for Vornado because Deutsch is one of the leading ad agencies and having an elite tenant in its clientele would boost business for the real estate Investment Trust.
Vornado's second quarter earning reportedly took a loss on its investment in the toy company Toys "R" Us Inc. However, the company said it was pleased with its performance.
"There has been a lot of hubbub lately about Manhattan Street Retail. This asset class is now drawing a lot of attention, and some of our industry brethren are now jumping on the bandwagon that we have been on for the last 15 years," Steven Roth , Chairman, Chief Executive Officer of Vornado, said in an earnings call with investors.
"This asset class has been and continues to be the best performing of all retail asset classes, benefiting from increases in tenant sales, rapidly rising rents, rabid investor interest and, most importantly, extremely limited supply, read extreme scarcity," he added.
