The New York City Department of Citywide Administrative Services (DCAS) has confirmed the extension of a significant lease for a government agency in Midtown South, New York City. The New York City Human Resources Administration (HRA) will remain for an additional 18 months at Vornado Realty Trust's 260 11th Avenue building. This concerns an area of 174,186 square feet, according to a source familiar with the transaction.
The agreement was mentioned in a monthly report on Manhattan's office property market by Colliers. Beyond merely stating the extension, the report offered no further details on the deal. It merely referred to the average office asking rent in Midtown South, which was $78.90 in August.
DCAS conducted the negotiations on behalf of the HRA. The brokers who represented Vornado in this deal were not publicly named; Vornado declined to comment. The HRA lease was originally scheduled to expire in October, as reported by The Real Deal in September 2022. There were indications that the HRA may have expanded its initial 154,000 square feet in the interim.
HRA Locations and Significance
The HRA maintains several locations across the city to provide its diverse services. This includes a 350,000-square-foot office at Clipper Equities' 250 Livingston Street, where legal advice is provided. Another location is a 9,199-square-foot office at 25 Chapel Street in Downtown Brooklyn, which offers support for veterans.
Historic Building in Midtown
The building at 260 11th Avenue is located between West 26th and West 27th Street, just a few blocks south of Hudson Yards. It is a seven-storey, landmarked building constructed in 1911 and known as the Otis Elevator Building. Vornado holds a 99-year ground lease for this historic property.
