Comcast Moves Into New Times Square Office

Telecommunications giant Comcast sealed a 141,000-square-foot lease at 1540 Broadway in Times Square. The company is set to occupy floors 27 through 31 of the BDT & MSD Partners and GFP Real Estate-owned office space in Manhattan, N.Y.(opens in new tab) The move marks a relocation and consolidation push from Comcast, which previously conducted its advertising sales and technology division’s operations from Shorenstein Properties’ 1407 Broadway and BGRE’s 55 W. 46^th St.

A Savills’ team of Gabe Marans, Jay Joyce, and Greg Bante negotiated the agreement on behalf of the tenant, while Frank Doyle, Clark Finney, Mike Pallas and Carlee Palmer of JLL, along with GFP’s Allen Gurevich, represented the landlord. According to sources, the asking rent was around $90 per square foot(opens in new tab).

“Tenants continue to gravitate toward buildings that combine exceptional ownership, modern amenities, efficient floor plates, and premier accessibility, and 1540 Broadway has emerged as one of the strongest examples of that trend,” Finney said.

Other tenants in the 907,000-square-foot tower, previously known as Bertelsmann Building, include Woori Bank New York Agency — a Korean bank that signed a lease for 19,000 square feet — and Pandora Jewelry, which renewed and expanded its lease to 56,000 square feet(opens in new tab) at the start of the year. Adobe and pharmaceuticals developer Schrodinger are also part of the roster.

Developed by Bruce Eichner, the 44-story office tower — which sits at the intersection of Broadway and Seventh Avenue — has changed hands several times throughout the years, particularly in the years leading up to the 2008 financial crisis.

In 2004, Bertelsmann sold the asset to Paramount Group, followed by another couple of quick sales to Equity Office and then Macklowe Properties in 2006 and 2007, respectively.

Then, Edge Funds, under the leadership of Mark Keller and Gary Siegel, bought the office portion of the property in 2010 together with HSBC Alternative Investments.

Currently, 1540 Broadway — which also has 162,000 square feet of retail space owned by Vornado Realty Trust — is undergoing a $150 million overhaul led by GFP. The upgrades include 45,000 square feet of amenities on the building’s eighth and 36th floors.

“The decision by Comcast and others to locate their employees here reflects what we’re hearing throughout the market — companies continue to prioritize high-quality office environments that help attract talent, foster collaboration and support long-term growth,” said GFP Development CEO, Brian Steinwurtzel. “With additional transactions in advanced discussions, we expect the remaining space to be substantially leased by year-end.”