- NYU has signed a 70-year master lease for over 1M SF at 770 Broadway in NoHo, Manhattan.
- The deal marks one of the largest office lease in New York City since the pandemic began.
- NYU plans to turn the space into a cutting-edge engineering, science, and technology hub supported by $200M in donations.
NYU’s Major Expansion
New York University has finalized a master lease for over 1M SF at 770 Broadway, reports Globe St. The agreement with Vornado Realty Trust unfolds in two phases, transforming 770 Broadway into an engineering and technology hub.
A Historic Lease
The 70-year triple-net lease, valued at $9.3M annually, stands as Manhattan’s largest office lease since the pandemic hit in early 2020. NYU will have the option to purchase the leased space in 2055 and again in 2095, when the lease term ends.
NYU will assume rental income from existing tenants as it redevelops 770 Broadway in phases for university use. Wegmans, a major tenant, will remain, but the fate of others is yet to be determined.
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Building a Technology Hub
NYU has raised $200M to transform 770 Broadway into a collaborative hub for faculty, researchers, and innovation. The facility will focus on advancing areas such as AI, biotechnology, and quantum information sciences.
The university expects that consolidating operations at 770 Broadway will save $800M in rent over the first 30 years of the lease. Currently, NYU operates out of eight different buildings around Washington Square Park.
Why It Matters
This lease signals confidence in Manhattan’s office market and highlights universities investing in large-scale, mixed-use innovation hubs. NYU aims to “battle diseases, save lives, and drive technological innovation” to keep the US competitive, it stated.
What’s Next
NYU is in the early design and planning stages for the building’s transformation. The relocation timeline is unannounced, but the project is expected to set a benchmark for institutional real estate in NYC.
