The technology company Gusto, specialising in HR solutions, has significantly expanded its office space in Penn 1, a Midtown office tower managed by Vornado Realty Trust. The property, also known as 1 Pennsylvania Plaza, encompasses a total of 2.5 million square feet. The latest agreement provides for a doubling of the previous area, increasing Gusto's total presence in this building to 76,000 square feet.
The deal includes a 13-year lease extension for an additional 38,000 square feet on the 47th floor of the high-rise. At the same time, the company opted for a five-year extension of its existing lease for the 52nd floor, which also measures 38,000 square feet. Details of the deal were first reported by The Real Deal.
Transaction Details and Lease Terms
The reported rent for this transaction was $135 per square foot. Jeff Fisher, Sacha Zarba, and Conor Krup of CBRE negotiated the agreement on behalf of Gusto. The landlord's interests were represented internally by Josh Glick, Jared Silverman, and Anthony Cugini of Vornado.
Penn 1 is Vornado's largest office tower in the sought-after Penn District. The building underwent extensive renovations in 2023, with an investment of $450 million. This measure added over 160,000 square feet of amenities to the property, including a restaurant and a 35,000 square foot wellness and fitness centre. Rents in the 55-storey tower are significantly above the average for office space in Midtown, which according to CBRE data, was $85.55 per square foot in August.
High-Calibre Tenant Structure
Tenants at Penn 1 include prominent companies such as electronics giant Samsung, which also doubled its space there last year. Technology group Dell, insurance provider United Healthcare, and financial institutions like Morgan Stanley and Wells Fargo are also located in this prestigious building.
Neither Gusto nor Vornado or CBRE immediately responded to requests for comment on the deal.