Today, CompStak's data was used in the WSJ article "More Than First Glance." We're psyched to continue to be a trusted source for lease comp information! The full text of the article is below, and available on the WSJ website.
When Chadbourne & Parke LLP announced last week that it had leased the Sixth Avenue space formerly occupied by bankrupt firm Dewey & LeBoeuf, many guessed the law firm may have cut a great deal for itself on rent.
After all, Chadbourne had been focusing on new developments—such as 1 World Trade Center and 250 W. 55th St.—in what was one of the most watched real-estate searches in the city. Observers figured Chadbourne opted for 1301 Sixth Ave., which is close to 50 years old, because landlord Paramount Group Inc. offered lease terms the law firm couldn't resist.
But it turns Chadbourne's rent for the more than 200,000 square feet will be as high or higher than what law firms in newer towers agreed to pay in other recent leases. Chadbourne has agreed to pay rent starting at more than $82 a square foot for the more than 200,000 square feet in 1301 Sixth, according to a person familiar with the terms of the deal.
By comparison, Morrison & Foerster LLP last year agreed to pay $77.90 a square foot for about the same amount of space in Boston Properties' new development at 250 W, 55th St., according to a person familiar with the deal.
On the other hand, 1301 Sixth is a better location than 250 W. 55th St. and the World Trade Center, and the new Chadbourne space will have great views of Central Park. Also, Paramount sweetened the deal with a generous contribution to the planned renovation: about $70 per square foot, according details of the deal circulating in the brokerage industry.
A Chadbourne spokesman declined to comment on specific lease terms. But he said: "We've got attractive terms in this whole deal that's allowing us to go in there." The spokesman also noted that the firm will improve the offices so that it rivals the efficiency of space in new developments. "We are doing a total renovation down to the studs," he says.
The total value of Chadbourne's 20-year deal, excluding concessions, was about $370 million, according to data provided by CompStak. The commission earned by a Newmark Grubb Knight Frank team that represented the firm would have been around $8.5 million, according to a standard formula in the brokerage industry.