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Amazon (NASDAQ: AMZN ) has doubled down on its relentless Midtown Manhattan expansion by leasing 330,000 square feet at 10 Bryant Park, also known as 452 Fifth Ave. at West 40th St., The Real Deal reported, further confirming the area's resurgent office market .
Formerly the HSBC Tower, the lease keeps the property in the hands of owners, Israeli-based Property & Building Corp. The tech giant will lease nine floors in a 15-year deal. It also has the option to lease another 145,000 square feet at the adjoining 10-story landmarked Beaux Arts property known as the Knox Building.
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The move comes after Amazon acknowledged to CoStar News in December that it didn't have enough space to accommodate all its employees who were mandated to return to the office. Thus, the move had to be postponed by four months.
Intense Expansion Strategy
Since Amazon then-CEO Jeff Bezos to pulled out of expansion plans in Long Island City in 2016, the company has instead embarked on an intense growth strategy in Manhattan. In 2020, it purchased the former Lord & Taylor flagship store on Fifth Avenue for $1 billion, where it employs 2,000 workers. The company has also purchased space at 330 W. 34th St., 237 Park Ave., and 5 Manhattan West. However, the New York Post 's sources speculate that these are short-term leases and that employees will vacate the offices once 10 Bryant Park is ready.
Amazon will initially pay $29.5 million in rent for 10 Bryant Park, which is set to increase to $32.2 million in five years, The Real Deal reports. The lease of another prime piece of Midtown Manhattan real estate has put the area at almost maximum occupancy, according to the Post, a situation that seemed unthinkable in the wake of the pandemic shutdown four years ago.
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Wynwood Plaza, Miami
Amazon also occupies space in the city at Brookfield Properties' 5 Manhattan West, located at 450 W. 33rd St., where it has more than 285,000 square feet, according to CoStar data . The company has also been on a nationwide office expansion. In January, it signed Wynwood's largest office lease ever in Miami, occupying 50,000 square feet in Wynwood Plaza. The development broke ground in early 2023. It will feature a 12-story office tower, as well as 509 residential units, retail and restaurant spaces.
"We're thrilled Amazon has selected Wynwood Plaza as its home in Miami," Bryan Lapidus, vice president at L&L Holding, one of the project's developers, told CREDaily in January. "It will continue to attract leading companies seeking a world-class, highly amenitized workspace in one of the most exciting regions in the country."
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Reconfiguring Seattle Area Office Space
Amazon has also reconfigured its office footprint in its Seattle headquarters. At the end of the year, it increased its employee headcount in the Bellevue area of Puget Sound.
$108 Billion Amazon Web Services Revenue
Amazon Web Services' revenue for 2024 soared to $108 billion , 19% year-on-year growth for the cloud business. In his latest letter to shareholders , Amazon CEO Andy Jassy addressed the company's return to office mandate: "In my experience, it doesn't compare to being in the same room," he wrote. "The energy, the pace, the spontaneous brainstorming, the willingness for people to jump in, the way ideas evolve in real time and the post-meeting iteration is much better when in the same room — and yields better outcomes for our customers and teams."
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This article Amazon's Relentless Expansion In NYC's Bryant Park Keeps Office Real Estate In Midtown Manhattan Smokin' Hot In A Dramatic Turnaround originally appeared on Benzinga.com