The New York City Board of Education Retirement System is making a long-term bet on Downtown Manhattan.
The pension system, also known as BERS, signed a 78,000-square-foot lease at 55 Water Street, expanding its footprint at the sprawling Financial District office tower and committing to the building for the next three decades, according to CBRE.
BERS already occupies 51,000 square feet on the building’s 50th floor as a subtenant. Under the new agreement, it will take the entire 50th floor and add a ground-floor retail presence through a 30-year direct lease with the landlord, the Retirement Systems of Alabama. The asking rent was not disclosed.
A CBRE team including Howard Fiddle, Bradley Gerla and Evan Haskell represented the owner. Savills’ Marc Shapses represented BERS.
The deal marks another leasing win for 55 Water Street, the 4 million-square-foot office complex that has emerged as one of Downtown’s more active buildings as the neighborhood works its way back from the pandemic-era slump. Tenants have inked deals for roughly 275,000 square feet of leasing at the property over the past 18 months, according to CBRE. The 53-story tower features the Elevated Acre, a one-acre public park perched 40 feet above the streets of Lower Manhattan.
The lease adds to a string of recent transactions at the tower. Last fall, brokerage services firm GFI Group renewed its 64,000-square-foot lease and expanded by another 65,000 square feet, bringing its total footprint to roughly 129,000 square feet. Telecommunications provider MetTel expanded to 69,000 square feet earlier in the year, while engineering consultancy Jaros, Baum & Bolles signed a 68,000-square-foot lease. Transportation technology firm Verra Mobility also took a 57,000-square-foot sublease in the building.
Downtown leasing has gained momentum since the first quarter, though it still trails Midtown’s pace. Availability has tightened 4 percent year over year, rents have climbed above $61 per square foot, and the market posted nearly 1.8 million square feet of leasing activity through the first five months of the year, according to CBRE.
