The law firm Nutter, which offers comprehensive legal advice to individuals and businesses, has significantly expanded its presence at 5 Grand Central East – also known as 655 Third Avenue. The firm renewed its existing lease for 5,719 square feet (sq ft) on the 27th floor and added a further 5,719 sq ft across the entire 25th floor. This increases Nutter's total area in the 30-storey office tower to 11,438 sq ft.
Jody Durst, President of the Durst Organization, highlighted the location's appeal. He stated that the Manhattan office leasing market was booming, particularly for Class-A space in conveniently located areas such as Grand Central East. Nutter's decision to expand at 5 Grand Central East underscores the desirability of the area and Durst's long-term investments in its buildings.
The lease term was not disclosed. According to Durst, the asking rent was US$80 per square foot. The transaction was brokered for Nutter by Michael Joyce and Trevor Larkin of CBRE, while Durst was represented in-house by Tom Bow, Ashlea Aaron, Bailey Caliban, and Sayo Kamara. Nutter, founded in 1879, has been a tenant in this Durst building, located between East 41st and East 42nd Street, since 2022.
Rising Demand in the Grand Central East Submarket
Michael Scott, Co-Managing Partner at Nutter, explained that 5 Grand Central East was the right location for their clients and team as the firm grew. In December, Durst rebranded two of its office buildings near Grand Central: 655 Third Avenue became 5 Grand Central East, and 733 Third Avenue became 11 Grand Central East. This rebranding reflected Durst's ongoing investments in the Grand Central submarket.
The Grand Central East submarket extends from East 38th to East 47th Street, between Park Avenue and Second Avenue. Demand for office space in this submarket has risen by 127 percent since 2021, primarily driven by tenants from the finance, insurance, and real estate (FIRE) sector. Data from commercial real estate software company VTS also shows that these tenants are seeking more office space than before. In 2021, tenants in the Grand Central East market sought 3.3 million sq ft of office space; last year, this figure had already reached 6.6 million sq ft.
Comprehensive Investments by Durst
As part of its investment strategy in the submarket, Durst is investing US$16 million in 5 Grand Central East. These capital improvements include the installation of new HVAC systems and a new building management system. Other tenants at 5 Grand Central East include general contractor Clune Construction, recruitment firm Abacus Group, and the New York City headquarters of the state agency Empire State Development.
