- Weil, Gotshal & Manges occupies about 10 floors, nearly 450,000 SF, at the GM Building, paying about $121 per SF under a 2014 renewal that runs through 2034, per KBRA.
- Brokers say tenants would pay more than $200 per SF today, so the lease is worth far more than the rent, and it’s unclear whether Weil or BXP’s venture captures that value.
- BXP must refinance the building’s 3.43% mortgage next year, which gives Weil leverage in negotiations and gives the landlord a reason to settle the lease before going to lenders.
One of Midtown’s best tower floor blocks may be about to change hands. The Wall Street Journal reports that Weil, Gotshal & Manges’ collapse leaves nearly 450,000 SF at the GM Building in play.
Weil pays about $121 per SF under a 2014 renewal with a term through 2034, per KBRA. Brokers say tenants would pay more than $200 today.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Who Gets the Windfall
Nobody knows yet whether Weil or the BXP-led ownership venture captures the gap. A bankruptcy filing would let Weil ask a court to approve selling the lease to someone else.
BXP could argue any replacement lacks the credit to honor the lease. It could also buy the lease back as Weil winds down, then relet at market rents.
The Refinancing Angle
BXP has to refinance the building’s 3.43% mortgage next year. That could give Weil leverage, and it gives the landlord a reason to settle before lenders ask how much rent will cover the new loan.
In our brief on the NYC maturity wall, Circlemark counted the GM Building’s $2.30 billion mortgage as 26% of the city’s $8.7 billion in loans coming due over 12 months.
On this week’s earnings call, BXP’s president, Doug Linde, conceded that in-place rents at the tower trail the market by a wide margin.
A Tight Market
The timing helps whoever ends up with the space. Avison Young put Manhattan availability at 13.4% in Q3, nearing single digits at the very top of the market.
Cushman & Wakefield’s Josh Kuriloff told the Journal that Midtown has essentially no trophy space and called this the strongest tower-floor block in any trophy asset. Avison Young’s Rory Murphy said brokers are all watching the building.
Why It Matters
Law firms are a core part of premium leasing. As we reported in premium law firm leasing, JLL data showed legal tenants accounted for 21.7% of leases signed above $100 PSF in Q1 2026.
A firm like Weil leaving a big block shows how thin the margin can be for even prime tenants, and how quickly a below-market lease becomes an asset.
What’s Next
Watch whether Weil files for bankruptcy and how BXP responds. The outcome will set a template for how landlords and failing tenants split value when the lease is worth more than the rent.
