Simpson Thacher & Bartlett has committed to a long-term office lease totaling 916,000 square feet at 570 Fifth Ave, Extell Development’s new tower in Midtown Manhattan. The transaction, reported by the New York Business Journal based on data from Colliers, expands the global law firm’s previously reported leasing plan for the project, which last fall was expected to be about 700,000 square feet.
The deal is described as the largest new office lease signed in Manhattan so far this year. It also ranks as the second largest office lease overall in Manhattan year to date, trailing only Bank of America’s expansion at 1 Bryant Park. Within the broader Manhattan office leasing landscape, this commitment stands out for both its size and its concentration in a single tenant.
The agreement between Simpson Thacher and Extell is structured as a 25-year lease term. According to the New York Business Journal report, the lease also provides Simpson Thacher with two separate 10-year extension options, potentially allowing the firm to remain in place for as long as 45 years if both options are exercised. The structure underscores a long-duration commitment by the tenant to the new Midtown office tower.
The property at 570 Fifth Ave also includes retail space, and the lease terms contain detailed restrictions on how Extell can lease that portion of the building. The remaining retail space at the property is expected to be occupied primarily by Ikea. Within that context, Simpson Thacher’s lease sets parameters limiting the types of additional retailers that can be brought into the project.
Under the lease agreement, Extell is prohibited from signing retail tenants in certain categories at 570 Fifth Ave. The landlord may not lease retail space in the building to fast-food chains, discount department stores, pharmacies, government agencies, grocery stores, liquor stores, discount retailers, some jewelry stores, cannabis-related users, adult or obscene uses, gambling uses, co-working spaces or low-cost gyms. These restrictions appear designed to shape the overall merchandising and positioning of the property’s retail component in alignment with the law firm and Ikea.
While financial terms such as rental rate, concessions or tenant improvement allowances were not disclosed, the size of the lease and its duration signal that 570 Fifth Ave will have a significant portion of its office space occupied by a single law firm tenant once the building is delivered and occupied. Additional details on the project’s total office square footage, ownership structure and delivery timeline were not reported in the New York Business Journal summary cited.
