Genius Sports lease pushes Vornado tower to 95 percent occupied

Genius Sports is moving its U.S. headquarters to Vornado Realty Trust's 1290 Avenue of the Americas under a 53,000-square-foot, 10-year lease that pushes the Midtown tower to 95 percent occupied, the latest trophy trade in a market split between renovated institutional towers and the rest. The London-based sports analytics firm is trading its 28,000-square-foot West Chelsea office at 512 West 22nd Street for part of the sixth floor in the 43-story building between 51st and 52nd streets, nearly doubling its New York footprint at an asking rent of $99 per square foot, The Real Deal first reported.

The lease extends a run of commitments at 1290, where business consultants Portage Point Partners and Protiviti signed for a combined 93,000 square feet late last year, Oaktree took the entire 12th floor in January, and law firm Selendy Gay holds 101,000 square feet a few stories above. The building recently completed a $45 million lobby and amenities renovation, Neuberger Berman remains the anchor, and Vornado owns 70 percent of the asset with the Trump Organization holding a passive 30 percent. Newmark's Josh Berg and A.J. Dorn negotiated for Genius Sports; Vornado was represented in-house by Ryan Levy and Edward Riguardi.

The expansion also says something about the tenant: the West Chelsea building Genius Sports is leaving was sold by Vornado and the Albanese Organization to Raghsa Real Estate last year for $205 million, and rather than stay put or downsize, the firm doubled down on Midtown.

At $99 per square foot, the asking rent is well below the $140-to-$150-a-foot full-floor commitments that credit tenants are still paying at 1251 Avenue of the Americas, as this publication reported last week, and both trades show capital and occupancy concentrating in renovated, institutionally owned towers while the broader market still prices vacancy. For Vornado, the math is direct: a $45 million renovation has helped lift the building to 95 percent occupied, a level that validates the spend. The towers without that balance-sheet support are the ones still hunting for a clearing price.