In a significant moment for the US real estate sector, Paul, Weiss, Rifkind, Wharton & Garrison has supposedly signed the largest commercial lease of the year, revealing plans to relocate its offices in Midtown Manhattan. Paul Weiss, a law firm founded in New York, inked a 20-year lease agreement. Notably, the deal entitles the firm to occupy a generous 765,000 square feet across 18 floors of 1345 Avenue of the Americas. After an almost three-decade-long occupancy, the venerable firm is leaving 1285 Avenue of the Americas, where its lease is due to end in 2026. Bloomberg reports on this notable event.
Appraising the large-scale movement in New York City’s legal sector, it’s clear that 2021 has been a dynamic year. Law firms have emerged as one of the most active leasing sectors in the city, alongside the finance industry. A recent survey by Savills discovered that law firms’ expansion rate is accelerating, with 42.6% of leases signed by law firms through Q3 2021 up from 28.5% in 2022 involving expansions.
The legal sector’s other significant lease transactions in Manhattan this year include Davis Polk & Wardwell’s over 700,000 square feet at 450 Lexington Ave., Paul Hastings’ expanded presence to 277,000 square feet at 200 Park Avenue, and Wachtell, Lipton, Rosen & Katz’s renewal of about 260,000 square feet at 51 West 52nd St.
The law firm’s chairman, Brad Karp, expressed enthusiasm about the impending move, highlighting the new location’s advanced capabilities, including high-tech features, smart meeting spaces and aesthetic embellishments.