Lehman expands Jersey City presence

By: Tommy Fernandez
August 07. 2007 2:22PM
Crain's New York Business,?NY

Lehman Brothers Holdings Inc. is expanding its presence at Jersey City skyscraper 101 Hudson Street, capitalizing on the cheap rents and expanding beautification of the city's waterfront.

The financial services company has signed a lease, which expires January 31, 2018, for 71,504 square feet. This consists of a 10-year expansion of 62,763 square feet and a seven-year renewal of 8,741 square feet.

As a result, Lehman now leases 270,063 square feet at 101 Hudson, a 42-story, 1.25 million-square-foot office tower located along Jersey City's waterfront. The corporate trophy building, which is owned by the Mack-Cali Realty Corp., is now 91.9% leased. Other tenants at the tower include Merrill Lynch & Co. Inc., American International Group inc. and PriceWaterhouse Coopers.

Lehman's facilities at the building currently include data processing, support, and some trading operations, according to Mack-Cali President and Chief Executive Officer Mitchell Hersh. Mr. Hersh says Lehman is expanding its presence in the building to take advantage of the area's low office rents, which average $37.16 per square foot according to a June report by Cushman & Wakefield. In comparison, midtown Manhattan office rents average about $100. Moreover, the Jersey City area has seen an explosion of redevelopment of the past decade.

"This neighborhood has become a sophisticated environment for many financial institutions," says Mr. Hersh.