In late December, we wrote about the software company 10gen’s move from George Post’s historic 568 Broadway to the former New York Times Company headquarters at 229 West 43rd Street. During that time, the latter has turned into a beacon for tech and new media firms, from Yahoo! to Felix/CityGrid Media, looking for larger floorplates and higher vacancy rates than what’s currently available in Midtown South.
Now, just seven months later, 10gen is already exercising its option to expand on the tower’s fifth floor. The company is taking about 21,000 additional square feet at an asking rent of $75 per square foot. The deal also maintains 10gen’s option to lease the fifth floor’s remaining 14,000 square feet and occupy it in its entirety. As we noted previously about 10gen’s initial move to 229 West 43rd Street:
For 10gen, its new landlord’s flexibility was key. The company is taking 25,000 square feet and Blackstone – whose affiliate owns the tower – gave 10gen the option of expanding into the rest of the fifth floor’s 30,000 square feet during the 5-year term of the lease. It also provided a “generous” fit-out allowance. “Most tech companies need to limit capital expenditures,” as a 10gen representative noted for Crain’s. The deal is for five years and rumored to be between $70 and $80 per square foot. 10gen will make its move sometime in April.
10gen – founded in 2007 in New York City and currently with offices in Palo Alto, Reston, London, Dublin, Barcelona, and Sydney – is a software company that develops and supports the MongoDB NoSQL database. “As 10gen was quickly growing in size, we structured the 2012 lease to accommodate their expansion plans,” Greg Taubin of Studley, who represents 10gen, told Real Estate Weekly. “However, the company is growing so quickly that we had to mobilize and lease what was going to be one of their expansion option spaces earlier than previously planned.”
Upwards of 160 10gen employees will now work at 220 West 43rd Street in a neighborhood that is rapidly becoming an important hub for New York City’s technology industry (much like 10gen’s former home at 568 Broadway). Expect to see more of these types of transactions in the Times Square submarket, particularly as landlords aim to capitalize on the tech industry’s appetite for large blocks of space in locations near and among similar firms.