Lawyerly Lairs: Cleary Expands; New Digs for Gibson
Not a heck of a lot going on today, a Friday in the holiday season. So let's fall back on a staple of these pages: New York real estate.
If you're an associate at Cleary Gottlieb who's a fan of the current offices at One Liberty Plaza, congratulations. You're not going anywhere anytime soon. From today's New York Post:
[P]owerhouse law firm Cleary Gottlieb inked a deal to expand by 100,000 square feet at One Liberty Plaza. The law firm just signed a 20-year lease for 550,000 square-feet with landlord Brookfield Properties after more than a year of what Newmark Knight Frank broker Mark Weiss called "very competitive" and "very intricate" negotiations.Cleary Gottlieb previously had 450,000 square feet under a lease due to expire in 2010. The "competitive" aspect was an attempt by Larry Silverstein to lure the firm to his new 7 World Trade Center.
Seven World Trade is a beautiful new building. But it's expensive; we're guessing Cleary got a very good deal to stay in its current spot. (The terms of the renewal were not disclosed.)
Meanwhile, a few miles uptown, Gibson Dunn & Crutcher is making a move. Details after the jump.
From the New York Observer:
The law firm Gibson Dunn is in the final stage of wrapping up a 200,000-square-foot lease for the tower floors of a planned Eighth Avenue skyscraper, a source said.Gibson Dunn would be the first tenant for the 38-story, 900,000-square-foot tower, at the corner of 55th street, that is being developed by Mort Zuckerman’s Boston Properties and Madison Equities.
Is it a smart move? The jury is still out:
[S]ome brokers around the city are scratching their heads. “I don’t understand what they’re doing,” said one major Manhattan broker. “It seems like Gibson Dunn only signs at the top of the market.”...One broker sniped that it’s hard for Gibson Dunn to get a good read on the market when the firm has the dubious industry distinction of constantly switching brokers. The firm’s current broker is Lewis Miller of CB Richard Ellis, but in 2004 when it signed on to an extra floor at 200 Park, its broker was Tara Stacom of Cushman & Wakefield. Before that, in 1997, it was represented by Henry Goodfriend and James de Jong, according to a story in Real Estate Weekly, and Robert Emden—now of PBS Real Estate—brokered its first deal at 200 Park in the late 80’s.
Even though midtown Manhattan is way more appealing and convenient than downtown Manhattan (at least in our opinion), lower Manhattan has its virtues -- like much lower rents. Asking rents at One Liberty Plaza, Cleary's current and future digs, are in the $60s per square foot (and were as low as the $30s after 9/11). Meanwhile, it appears that GDC will be paying over $100 a square for its new space.
Legal Eagles Sign Liberty Plaza Deal [New York Post]
Zuckerman Zipping Up First Lease at New Midtown Tower [New York Observer]
(41) Comments
Question: When people talk about the high cost of living in NYC---are they talking exclusively about real estate or are other necessities (electricity, water, garbage, food, etc.) also higher in NYC?
other necessities as well.
Garbage is definitely getting expensive. I paid $87 for a 3 pound bag last week.
Being downtown SUCKS. I chose my firm in part because it's in midtown. It's nice to be able to step out for an hour and do Christmas shopping.
4:42: More than necessities, the problem in NY is with thhe taxes. They are brutal.
425 Park Ave. is where the action is ...
who gives a fuck? your blog sucks ass man
4:59, you suck ass man
What is Dewey & LeBoeuf planning to do with its two separate NY offices? Combine them? Where and when? The Dewey digs looked pretty nice in "Michael Clayton." Any room for 350+ more attorneys in there?
The cost of living problems are taxes, beer, food, rent, beer, etc....
I mean seriously $15 for a 6 pack from the corner store?? it's killing me!
And I can't get away with spending less than $12 on a sandwhich and a drink for lunch near the office...
eh, it's no cbs building
latham just took quite a bit more sq footage in lipstick
Dewey is moving LeBoeuf into their offices on 6th. They call the LeBoeuf office their "north" office right now. Michael Clayton didnt capture how gorgeous their offices are- very old money feeling.
My guess is that "Do we eat the beef" is going to keep two separate offices for a while. It is less a matter of having space for 350+ attorneys (which I suspect is unlikely) and more a matter of when each of their leases are up and what the cost of breaching or escaping the lease will be. Then they have to be able to find a space big enough for them. Too many expensive variables. It is probably cheaper to keep the two separate spaces and just shuffle attorneys around (i.e., move all the litigators to one location, all the transactional attorneys to another, all the structured finance into a box on the corner).
I recognize that it's a pointless argument that ultimately boils down to personal tastes, but I have to respectfully disagree with Lat's and some posters' views that midtown is preferable to downtown. I previously worked at a downtown firm and I'm now working at a midtown firm, and I have to say that the new location is the only aspect of the move that I'm not pleased with. Midtown is more crowded (particularly with tourists) and lacks any of the old New York charm of the financial district. Having lived in the Village and worked downtown until I recently, I had little experience with midtown and it amazes me to learn that all of the tired New York cliches actually exist: the disgusting, cheesy mega-delis, the over-crowded, cattle-like sidewalks, and the hordes of douchey midtown types. The financial district is like a pleasant, charming oasis compared to midtown ... in my humble opinion, that is.
BOOOOO! This is the worst day in ATL history. Lat should just shut the site down and start anew on Monday.
Also, Dechert is moving from 30 Rock to the Verizon building across from Bryant Park. I think a lot of firms prefer midtown because so many partners are commuting in from north of the City or NJ.
The financial district is totally where it's at now. All the big investment banks are moving back near the WTC site in the next few years. Real estate is cheap now, but won't be later.
Midtown was a fad
5:14-
I agree.
Ugh I had a cb at GDC's office and I thought the space was horrid. The ceilings were really low, and it seemed kind of dark. This will no doubt be a vast improvement, particularly for those with NE views (over the park).
A whole week and no substantial bonus news. It feels like all the rank and file firms are looking around figuring how to best play the billables/bonus/special bonus formula to their advantage.
Must be nerve-wracking for their associates. Nothing beats being at a NY-based lockstep firm right now.
Citigroup center is where the action is.
I am a 2L who just signed on to summer at Cleary. Their offices were a big selling point (#1 in Vault). I am stoked that they will be in 1 Liberty Plaza for the long haul.
I will admit that at first I was disappointed about the firm being located in the financial district, but then I saw the type of place I could afford in Park Slope -- a 15 minute commute away!
I used to work at the WFC. It sucks. It's colder than midtown, there are fewer lunch options, and it's desolete, especially at night. I will never work downtown again.
5:59-
Completely agree. extra compensation for the same amount of work is always a plus
There may be fewer lunch options downtown (though Chinatown is a short stroll away if you can stomach it), but Cadwalader's offices make the location worthwhile. As long as no more assholes try to turn the buildings down here into airplane hangars, it's a good place to work, particularly since you'll probably live nearer to downtown than midtown, where even converted closets cost a fortune.
i stayed by the WFC when i was in town for a trial. at night, it was so desolate i was seriously scared for my life (and this is coming from someone who lived in NYC for years).
6:19 -- I agree entirely that our offices are the best in town. I started my career at a midtown firm, and when I moved down here, I wasn't sure what to expect (I had lived downtown, but that's a bit different from hanging around during the workday). The views here are amazing. Sadly, I'm still admiring the beautiful panoramic view from my office because I have a couple of pressing deals...
Good idea on Park Slope, too. My wife and I are moving there early next year. The commute is practically nonexistent.
How nice of Gibson and Latham to sign fancy new leases. Now, how about matching special bonuses?
Best part about One Liberty Plaza: proximity to John Street Bar and Grille.
5:19, as I understand it, Leboeuf's lease is near its end and was not renewed. I'd expect a single office from the beef lovers sooner rather than later. And Dewey's office is pretty amazing; I def. felt some remorse after I turned down the offer.
LW has more space? No more office sharing?
Fulbright in Houston has plush offices. The bathrooms have the nicest feeling TP of any job I have ever had. Seriously, who cares where you work as long as the shitter is top notch.
for a firm with 100 partners and a 600,000 sq. foot least, it costs about a cool $250,000 per partner per year more to have offices in midtown rather than downtown. i think i would take that money in lieu of more lunch options.
Cadwalader's offices are opulent to the extreme. Obscene, even. Especially the floor that contains only conference rooms with the telescope that's aimed at the Statue of Liberty. They are nice, but it is a bit much.
Short of gold curtains, it's difficult to have offices that are "a bit much." Cadwalader's offices are modern in a way that never gets old, unlike DLA Piper's new DC home, which is white, sterile, and repulsive.
Chicago is where its at, both Kirkland and Jenner are moving into pfat new brand new buildings under construction now in River North...
Cadwalader NY. Period.
downtown isn't too bad. i had a view of the statute of liberty from my office, which was sweet. food options are limited, but the amish market is where it's at. word.
Gibson has been looking to move for years, but couldn't find a space. It took over the 50th floor of MetLife when Clifford Chance moved out a few years ago, but continued to have space issues. It makes sense to me that they jumped on an opportunity to move into a new building where they can presumably get the space they need to expand on several contiguous floors.
Why midtown is better than downtown:
MUCH more hot a** to look at in midtown