The New York City Board of Education Retirement Systems (BERS) has committed to a major expansion at 55 Water Street in Lower Manhattan, finalizing a long-term office lease arranged by CBRE. Under the new agreement, BERS will occupy the entire 50th floor of the property, significantly increasing its footprint from a prior sublease of only a portion of that floor. The transaction covers 78,079 square feet of office space and converts BERS from a subtenant into a direct tenant of the building’s ownership.
In addition to taking over the full 50th floor, BERS will establish a ground-floor retail presence at the property. This new component of the lease broadens the retirement system’s occupancy beyond back-office space to include a street-level interface with the surrounding neighborhood. The full arrangement is structured as a 30-year direct lease, providing both BERS and the landlord with long-duration occupancy and income visibility at the asset.
The property is owned by New Water Street Corp., which was represented in the lease negotiations by a CBRE team. CBRE’s Howard Fiddle, Bradley Gerla, Evan Haskell and William Hooks acted on behalf of the landlord, coordinating the discussions that led to BERS’ expanded commitment. On the tenant side, Marc Shapses of Savills represented BERS in the transaction, advising the retirement system on its long-term space and location strategy at the building.
Commenting on the agreement, Fiddle described BERS’ willingness to sign a 30-year lease as a strong endorsement of both 55 Water Street and Lower Manhattan as a business address. His remarks underscored the significance of a public-sector pension-related entity locking in space on a multi-decade basis at the property. The long duration contrasts with shorter lease terms that have become more common in some parts of the office market.
Gerla noted that with the completion of this deal, 55 Water Street has executed approximately 275,000 square feet of leases over the past year and a half. That figure highlights an extended period of leasing activity at the building, with the BERS expansion adding meaningfully to the total volume completed. While specific rent terms and other financial details were not disclosed, the scale and term of the BERS lease, combined with the recent aggregate leasing at the property, point to sustained tenant demand at this Lower Manhattan office address.
