Samsung Doubles Down at Vornado’s Penn 1

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Samsung Expands Manhattan Footprint

Samsung Electronics has doubled its office space at Vornado Realty Trust's Penn 1 building in Midtown Manhattan. They signed a new 10-year lease for 35,000 square feet, adding to their existing 36,000 square feet (extended by three years). This brings their total space to 71,000 square feet, encompassing the entire 25th and 26th floors.

Lease Details and Market Context

The new lease on the 25th floor had an asking rent of $110 per square foot. JLL represented Samsung, while Vornado's in-house team handled the landlord side. This expansion follows Samsung's move from Chelsea two years prior. The article also notes that Manhattan office leasing slowed in May, despite a large NYU lease elsewhere, and that Vornado recently completed extensive renovations of Penn 1, including new amenities.

Penn 1 Tenants and Recent Activity

Other notable tenants at Penn 1 include Dell, Empire Health, Gusto, Hartford Insurance, Jacobs Engineering, Morgan Stanley, Wells Fargo, and a biotech firm founded by Vivek Ramaswamy which occupies the penthouse.

Two years ago, Samsung inked a lease for 36,000 square feet at Vornado Realty Trust’s Penn 1. The electronics giant essentially just did that again.

Samsung signed a 10-year lease for 35,000 square feet at the Midtown Manhattan property, the Commercial Observer reported. It also extended its previous lease for 36,000 square feet by three years to make the two deals coterminus, bringing Samsung’s footprint in the tower to 71,000 square feet.

Samsung occupied the entire 26th floor and will soon add the building’s entire 25th floor to its footprint.

The asking rent for the 25th-floor space was $110 per square foot. JLL’s Matthew Astrachan represented the tenant, while Vornado’s in-house team led by Josh Glick represented the landlord.

Samsung moved its North America ad sales group to Penn 1 two years ago from about 15,000 square feet at 123 West 18th Street.

Other tenants include Dell, Empire Health, Gusto, Hartford Insurance, Jacobs Engineering, Morgan Stanley and Wells Fargo. In the fall, a biotech company founded by former Republican presidential candidate Vivek Ramaswamy took the 55,000-square-foot duplex penthouse at the Midtown tower.

Vornado’s $450 million renovations of the 2.5 million-square-foot building included new plazas, a curtain wall, elevators, lobbies, LEED certification and other sustainability and carbon-cutting upgrades It also added 160,000 square feet of food and recreational amenities at the base.

Last month, tenants signed deals for 3.1 million square feet of office space in Manhattan, down roughly 7 percent from April, according to a Colliers report. That also represented the lowest monthly total of the year so far.

Leasing volume grew 5 percent year-over-year, however, due largely to NYU’s 1.1 million square foot lease at 770 Broadway, Manhattan’s largest new lease since 2019.

— Holden Walter-Warner

Read more Commercial New York Biotech company nabs top two floors at Vornado’s Penn 1 Commercial New York Vornado lures Samsung from Chelsea to Penn District Commercial New York Manhattan office leasing slowed in May, despite massive NYU lease

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