Snap, the technology company behind the popular Snapchat application, has taken over Verizon's three-floor office lease in Manhattan's Penn District. According to sources familiar with the transaction, the sublease covers an area of 198,983 square feet and spans the eighth to tenth floors of 2 Pennsylvania Plaza, known as Penn 2, which is owned by Vornado Realty Trust. The long-term agreement, concluded at a price above Verizon's original rent, runs until 2044.
It is currently unclear whether Snap plans to vacate its current offices at 229 West 43rd Street, where the 26,000-square-foot lease expires in June 2027, or if the Penn 2 lease represents an expansion with a second location. Following the completion of the sublease, Verizon will consolidate its existing offices in New York City, which include the corporate headquarters at 1095 Avenue of the Americas.
Transaction Details and Market Overview
Verizon had occupied the space across the three floors in July 2015, as previously reported, and had entered into a ten-year lease agreement with Vornado. A spokesperson for Vornado declined to disclose additional details of the sublease, including the rental terms. In the second quarter of 2026, average asking rents for Class-A office space in the Penn Station submarket were USD 122.90 per square foot, based on data from Cushman & Wakefield.
The availability of office sublease space in Manhattan has decreased by more than 26 percent over the past year, reaching its lowest level since August 2019, according to Colliers' July market report, which first referenced this sublease. Penn 2 itself is over 90 percent leased, according to Vornado, following investments of more than USD 2.5 million in the properties in the Penn District. Spokespersons for Snap and Verizon did not immediately respond to requests for comment.
Representation of Parties
Josh Kuriloff, Heather Thomas, Peyton Horn and Kyle Ernest of Cushman & Wakefield represented Verizon in the negotiations. Snap was advised by Ethan Silverstein, Amy Zhen and Bianca Di Mauro, also from C&W. Cushman & Wakefield declined to comment on the details of the transaction.
