Global law firm Simpson Thacher & Bartlett has signed one of Manhattan\u2019s largest office leases this year, a deal that adds momentum to what could become the market\u2019s strongest year since 2000, according to a Colliers report.<\/p>\n
The firm last month signed a 916,000-square-foot lease at 570 Fifth Ave., making it the largest transaction completed in May, Colliers said. The property is Extell\u2019s roughly million-square-foot mixed-use tower under construction between West 46th and 47th streets. The project is also expected to include an approximately 80,000-square-foot Ikea store after Ingka Investments \u2014 the investment arm of the group that owns most Ikea stores globally \u2014 disclosed backing the development.<\/a><\/p>\n Extell and Simpson Thacher did not immediately respond to CoStar News\u2019 separate requests for comment.<\/p>\n Thacher’s lease spans about 25 years and covers 25 full floors \u2014 from the fourth through 20th and 22nd through 30th floors \u2014 along with ground-floor and below-grade space, according to a public document filed with the city Department of Finance. The agreement also includes two 10-year extension options, as well as restrictions on competing law firms and certain retail uses within the building.<\/p>\n Simpson Thacher is currently based at 425 Lexington Ave., between 43rd and 44th, where it occupies about 542,000 square feet, according to CoStar data.<\/p>\n The deal comes as law firms, driven by a continued flight to quality, have \u201cdramatically increased their presence in the premium office market,\u201d accounting for 21.7% of U.S. office leases signed above $100 per square foot in the first quarter, according to JLL. The sector has also been a key driver of high-end demand in Manhattan.<\/p>\n Among the five largest Manhattan office leases signed last month, global law firm Baker McKenzie inked<\/a> a 121,833-square-foot renewal and expansion at 10 Bryant Park.<\/p>\n