- New York University’s 117,000-square-foot lease at 11 W. 42nd St. expires in June 2027, and the school has no plans to renew, per special servicer commentary.
- NYU renewed in 2021 at rents starting at $55.50 per square foot, well below the $76.98 average asking rent near Grand Central as of the second quarter.
- The exit gives Tishman Speyer a chance to re-lease a sizable block at market rates in one of Manhattan’s most sought-after office corridors.
New York University plans to vacate its 117,000-square-foot Midtown lease at 11 W. 42nd St. when it expires in June 2027, according to special servicer commentary on the building’s mortgage shared through Morningstar Credit and reported by Bisnow.
The space next to Bryant Park houses the School of Professional Studies’ Midtown Center, home of the Schack Institute of Real Estate, and its departure will put one of the larger blocks in the Midtown office market back into play.
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A Four-Decade Tenancy
NYU moved into the building in 1979 as an outpost for its School of Continuing Studies, which included its Real Estate Institute, and most recently renewed in 2021.
NYU spokesperson Wiley Norvell said the programs are relocating to university-owned buildings in Washington Square to sit closer to the main campus. He described Schack as the largest real estate program in the country, serving close to 2,000 students.
The Details
The 2021 renewal ran five years and six months and included the school’s own entrance, six months of free rent and a $30-per-square-foot tenant improvement allowance, the New York Post reported at the time. Rents started at $55.50 per square foot and step up to $61.28.
Tishman Speyer owns the roughly 960,000-square-foot tower, also known as the Salmon Tower Building, and has begun touring prospective tenants through NYU’s space. The building is otherwise nearly full: Michael Kors renewed its 203,000-square-foot headquarters lease in 2024, and First Citizens Bank occupies more than 150,000 square feet on a lease running through May 2034.
The property carries $274 million in CMBS debt plus a $56 million unsecuritized mezzanine loan, according to Morningstar, and was last valued at $555 million in 2023.
Midtown Office Rents Outpace Manhattan
Since NYU’s last renewal, the area around Grand Central Terminal has become one of the city’s most desired office corridors. Asking rents there averaged $76.98 per square foot in Q2 2026, above Manhattan’s overall $72.83, according to Cushman & Wakefield.
Investors are also chasing the corridor, as seen in L&L Infinite’s purchase of a Midtown East tower for $245 million.
Why It Matters
The gap between NYU’s contract rent and current asking rents gives Tishman Speyer a chance to reprice a large block, if it can backfill the space by mid-2027.
The disclosure also surfaced through CMBS reporting at a time when special servicing rates for office loans sit at record highs, keeping lease rollovers squarely on bondholders’ radar.
What’s Next
Watch for Tishman Speyer to announce a replacement tenant ahead of the June 2027 expiration. With the rest of the tower largely leased long term, a strong backfill would keep 11 W. 42nd St. among Midtown’s better-performing assets.
