Law firm Reed Smith, which was in advanced discussions to take 30 percent of Hines’ under-construction office tower at 7 Bryant Park, is no longer in the running for the space, The Real Deal has learned. Hines is shopping for a new anchor tenant to occupy the 160,000-square-foot space at the base of the tower, a source familiar with the developer said.
Reed Smith was eyeing a move to the 30-story, 471,000-square-foot building between West 39th and West 40th streets from its current Midtown East digs at 599 Lexington Avenue. But the source said that the law firm, which is a big player in the energy and natural resources industries, may now renew at 599 Lexington or look elsewhere.
“The timing of the decision-making didn’t work out,” said CBRE’s Mary Ann Tighe, who handles leasing at the building. “What we didn’t want is to hold the space off the market”, she said, noting that the tower tops out in June.
Hines is developing 7 Bryant Park in partnership with investment firm Pacolet Milliken Enterprises and JPMorgan Asset Management. Asking rents for the 160,000-square-foot space that Reed Smith was eyeing are in the high-$90s per square foot, a source familiar with the building said. The landlord is asking a whopping $200 per square foot for space at the top of tower.
JLL, which is managing the search for Reed Smith’s new space, didn’t respond to a request for comment by press time. Hines declined to comment, while representatives for Reed Smith couldn’t be reached. The building is slated for completion in 2015.
Bryant Park has become a viable office location for top-tier firms that were once firmly ensconced in Midtown East. Big tenants in the neighborhood include MetLife at 1095 Sixth Avenue and Bank of America at 1 Bryant Park.