FGS Global Inks New Lease at Vornado-Owned Penn 2

In a significant expansion, communications and consulting firm FGS Global is relocating its operations to a larger office space in Manhattan, N.Y., moving from Midtown East to the Hudson Yards area.

FGS Global committed to a 15-year lease for 80,000 square feet at Penn 2, Vornado Realty Trust’s newly redeveloped office tower situated directly above Penn Station. The firm will occupy the entire 16th floor and a portion of the 17th floor. Asking rent for this premium space was $115 per square foot. The building is now about 70% occupied.

The relocation represents a substantial upgrade and expansion for FGS Global, which currently utilizes about 60,000 square feet at Vornado’s 909 Third Ave. This move is also strategically motivated to bring the company closer to the Hudson Yards headquarters of KKR, the investment giant that recently acquired a majority stake in FGS.

In a major overhaul, Vornado Realty Trust recently completed a massive redevelopment of Penn 2, the 1.62-million-square-foot, 31-story tower originally built in 1968. Situated on one of the few double-wide blocks in New York City, the upgrades significantly modernized the property.

According to Vornado’s website, key renovations included reskinning the entire building with a new curtain wall, along with a 430-foot, double-height, column-free addition to the building’s base floors. Additionally, more than 73,000 square feet of outdoor amenity space was added and features a 17,000-square-foot rooftop park and a dedicated, 4,000-square-foot, 280-person auditorium.

Several real estate representatives facilitated the recent lease deal with FGS Global: Michael Liss of CBRE represented FGS Global, while Vornado was represented in-house by Josh Glick and Jared Silverman and externally by a Cushman & Wakefield team led by Josh Kuriloff and Bruce Mosler. Representatives from Vornado and FGS Global did not immediately provide comments on the transaction.

The new deal with FGS Global adds to a recent streak of leasing success at Penn 2, driven by tenants prioritizing newly renovated properties near mass transit. For example, Verizon’s 200,000-square-foot lease, signed last summer, signaled the telecommunications giant’s plan to move its headquarters to the building.

Penn 2 currently hosts a strong roster of corporate tenants, including the corporate offices for Madison Square Garden, Major League Soccer and Universal Music Group. The retail space hosts tenants such as JPMorgan Chase and The Dynamo Room steakhouse.