Advertising firm Saatchi & Saatchi recently renewed an 819,000-square-foot lease at Tishman Speyer’s 375 Hudson Street, which earned a 2007 Energy Star Award from EPA earlier this year. The 1.2 million-square-foot, 19-story building, which stands at the corner of West Houston Street, has been home to Saatchi since 1985, when rents in the Hudson Square submarket were approximately $20 per square foot.
The firm was the first ad agency to relocate from Midtown down to Hudson Square, where according to Jones Lang LaSalle rents are currently averaging $59 per square foot. CB Richard Ellis represented Saatchi in the lease negotiations; asking rent details are not available. The New York Post‘s Steve Cuozzo called the deal “welcome news in a market increasingly jittery over subprime fallout and the likelihood of space being dumped after inevitable layoffs.”
As you’ll recall, in order to participate in Energy Star, eligible commercial buildings must earn a score of 75 on a scale of 1-100 that’s relative to other buildings across the country. The comparison is made to a statistical model of building energy use that’s compiled every four years by the Department of Energy. An Energy Star building with a rating of 75 performs better than 75 percent of its peer buildings as determined by the survey. Applications are submitted online and require supporting building and energy use information. Energy Star ratings are awarded each year and EPA will periodically review labeled buildings in order to ensure performance.
375 Hudson Street was one of five New York City buildings that earned the Energy Star designation for 2007; the others were the New York Life Insurance Building, 520 Madison Avenue, 460 Park Avenue (Hahn Kook Center U.S.A. Inc.) and 320 Park Avenue (Mutual of America), which was also an Energy Star recipient in 2003, 2005, and 2006.