Savills Helps Covington & Burling Secure a Prime Location in the New York Times Building
Covington & Burling, LLP (“Covington”) had occupied its offices at 1330 Avenue of the Americas for over 15 years. During that time, Covington nearly tripled in size. The facility was in need of restoration and the firm desired a strategy for its short-term and long-term growth plans.
Savills conducted a thorough “stay-put vs. relocation” comparison, including analyzing various reconstruction scenarios, relative architectural efficiencies and long-term expansion flexibility.
Savills comprehensive analysis led to Covington securing 160,000 square feet in the New York Times Building. Savills achieved generous expansion options (1 contiguous floor in years 5 through 6; 1 additional floor in years 9 through 11) while other tenants were unable to achieve similar flexibility. Adding further flexibility to Covington’s occupancy, Savills also negotiated for a right of first offer on 2 floors, with an additional floor after 12 years. Savills ensured that this future growth will occur within range of Covington’s 2 elevator banks by negotiating for the relocation of a cross-over floor into Covington’s stacking plan.
The final transaction also included two 5-year renewal options with a discounted FMV rental rate. Covington will also enjoy “priority” interior signage located at the high-rise concierge desk and exterior signage outside the main entrance. Savills was able to achieve savings for Covington in excess of $9 million, compared to the per square foot terms of the transaction with Seyfarth Shaw, which was completed earlier in a rising market and on lower floors.