One of Manhattan’s largest office leases this year has been finalized by Amazon, marking a significant development demonstrating continued corporate investment in prime New York City real estate at HSBC. This major transaction underscores the tech giant’s aggressive expansion strategy within the city, driven by pressing needs for physical workspace.
The Seattle-based company has inked a substantial 15-year lease agreement for 330,000 square feet at 10 Bryant Park, the prominent 30-story tower situated at 452 Fifth Avenue and formerly known as the HSBC Tower. The deal, confirmed by landlord Property & Building Corp. (PBC), one of Israel’s leading construction and property firms, covers floors 3 through 11 of the building located strategically just south of Bryant Park itself.
The sheer scale of Amazon’s commitment is further highlighted by an included option: the company has the right to lease approximately 145,000 additional square feet in the adjoining 10-story landmark Beaux-Arts structure, the Knox Building. Should Amazon exercise this option, its total footprint consolidated within this block would approach nearly half a million square feet, representing a massive corporate presence.
This lease agreement’s magnitude firmly places it among Manhattan’s largest office commitments recorded in the current calendar year (as of the original reporting). Such large-volume deals are closely watched barometers in the commercial real estate sector, especially as companies navigate post-pandemic work arrangements and often prioritize high-quality, amenity-rich buildings in desirable locations – a trend known as the “flight to quality.”
Amazon’s need for this vast expansion became evident after the company mandated a return to office for its corporate employees five days a week earlier this year. Reports surfaced indicating that Amazon lacked sufficient existing space in several key markets, including New York, to comfortably accommodate the influx of returning personnel, prompting the search for significant additional square footage.
The financial terms of this major lease reflect the prime Midtown location and building class. The agreed-upon starting rent for the initial 330,000 square feet is approximately $29.5 million per year, which equates to about $89.40 per square foot annually. This rate is scheduled to escalate after the fifth and tenth years of the lease. Significant concessions, typical for leases of this scale, were included; notably, Amazon will benefit from a 16-month rent-free period. Furthermore, the landlord, PBC, is investing heavily – around $53.8 million – to prepare and customize the office space according to Amazon’s requirements before the planned handover (originally stated as by late May of the reporting year). The agreement also grants Amazon full or partial early termination rights after the 10-year mark.
This direct, long-term lease at 10 Bryant Park represents a significant pillar in Amazon’s broader real estate strategy in New York and beyond, which has involved a mix of direct leases, opportunistic subleases, and partnerships with flexible workspace providers like WeWork. The location is particularly strategic, situated directly across Fifth Avenue from Amazon’s major New York hub in the extensively redeveloped former Lord & Taylor department store building, effectively creating a substantial Amazon campus presence around Bryant Park.
In conclusion, Amazon’s decision to secure this vast amount of space at 10 Bryant Park is a standout transaction, marking one of Manhattan’s largest office leases this year and signaling both the company’s continued growth ambitions in New York City and the enduring appeal of premium office locations for major corporations.
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