THE surfer-wear fashion house Billabong signed on for a store at 112 W. 34th St. opposite Macy’s in Herald Square.
“Herald Square is sizzling,” said Jeffrey Roseman of Newmark Knight Frank Retail, who, with Paul Berkman, represented the tenant in the pact.
Joanne Podell of Cushman & Wakefield handled the work for W&H Properties on the 1,587-foot store, which is being carved out of the building’s large lobby. Sources said the average rent over the life of the 10-year deal works out to $630 a foot.
“We thought about what was a good image and a good user, and we thought Billabong was fashionable and not outrageous, and its quality offering was very appealing,” said Anthony Malkin, president of W&H Properties, who checked out Billabong’s Times Square store.
The Phillips Group is the architect for the new contemporary lobby that will have an undulating ceiling. New bathrooms, hallways and renovation of the curtain wall are also in the works for the original Zeckendorf-developed Childrenswear Building that, until recently, had been managed by Helmsley Spear. Office rents, which now range from the high $30s to mid-$40s, are expected to rise with the redo.
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QUICK TAKES: Merrill Lynch has “zeroed in” on and taken the lead in negotiations with Vornado Realty Trust for the new office tower that will take the place of the Hotel Pennsylvania.
There’s a group of Merrill folks that want to be closer to Midtown. Peter Riguardi of Jones Lang LaSalle has been handling the firm’s search and did not return calls for comment by press time . . .
Advertising giant Omnicom is “advertising” for around 300,000 feet to consolidate out of buildings that include 11 Madison Ave., working through their longtime broker Lee Feld of WF Realty, who could not be reached . . .
Bear Stearns is coming out of hibernation and needs more space . . .
It looks as if the lawyers at Cravath, Swaine & Moore waited too long to lock up a move out of Worldwide Plaza before their lease expires at the end of 2008.
Alternative 500,000-foot blocks have shriveled. The firm is now negotiating with new building owner Macklowe Properties to pick up a renewal option that we hear involves an appraisal for the next rent.
Ira Schuman of Studley has been leading the legal space search. No comments from spokespeople from Studley and Macklowe.
Complicating every company’s search is that the next wave of large new office towers won’t be ready until at least 2010, pushing up rents in all building classes. And you thought your office rent was expensive now?
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J.P. Morgan Chase is reshuffling itself within 4 New York Plaza to clear the top four floors totaling 198,280 square feet for sublease.
Christopher Krantz of Jones Lang LaSalle is marketing floors 19 through 22 with asking rent of $48 a foot.
