The online media company BuzzFeed has secured a two-year sublease from Tiffany for nearly 58,000 square feet on the full eighth floor of L&L Holdings’ historic LEED for Core and Shell Gold 200 Fifth Avenue. The company – which is currently heaquartered around the corner at 54 West 21st Street – is nearly doubling its footprint in connection with the move. Tiffany will build out the space itself – meaning that BuzzFeed will likely be on the move again when the sublease expires in the fall of 2015.
The deal reflects a couple of important points about the technology sector and the Midtown South submarket generally, as Lois Weiss notes in her piece in the Post that reported the transaction. First, locking into long-term leases is difficult for technology companies, whose space requirements are volatile: BuzzFeed started out with just 3500 square feet at 113 Spring Street. Second, although the supply of office space in Midtown South is limited, it is difficult for landlords to find tenants with the resources necessary to secure an entire floor at asking rents that were – at least as of this past January – nearly $80 per square foot.
The 850,000-square-foot, 16-story 200 Fifth Avenue was built in 1916 and renovated in 2008. That project – led by STUDIOS – upgraded the tower’s infrastructure, installed LED lighting in public and common spaces, and installed a rainwater collection system to support its green roof, bamboo-filled courtyard, and hanging gardens. 200 Fifth Avenue was the first New York City landmark to earn a LEED rating.
Tiffany will continue to occupy 400,000 square feet on the 9th through 14th floors. Other office tenants at 200 Fifth Avenue are Grey Group on 2 through 6 and 7, and IMG Worldwide, also on 7.