One of New York’s largest contiguous blocks of office space has been put on the market for sublease at a time when demand for top-tier stock is contending with limited supply.
Canadian financial giant Scotiabank is making available more than 185,000 square feet across floors 23 to 26 at 250 Vesey St., people familiar with the situation told CoStar News. The building is part of the Brookfield Place mixed-used complex owned by Brookfield, the Toronto-based global investment firm.
All of the floors except 25 were directly leased by Scotiabank from Brookfield, and floor 25 itself is a sublet, the people familiar with the matter said. Scotiabank, for its part, has taken over 200,000 square feet in a planned move to midtown Manhattan at Brookfield’s 660 Fifth Ave., the landlord said in September.
There’s a dwindling number of large blocks of top-tier office space available to meet tenants’ so-called flight-to-quality demand in the city, industry professionals have said. Last year, Manhattan posted its strongest office leasing since 2019, and the year closed with the seventh straight quarter of declining sublet availability, reaching the lowest supply since October 2019, according to a Colliers study.
The furnished, move-in-ready space at 250 Vesey with interconnected stairs can be leased contiguously or by full floor or partial floor, according to a marketing brochure.
Scotiabank didn’t immediately respond to a CoStar News request seeking comment. Brookfield and Cushman & Wakefield, the brokerage representing the bank, declined to comment.
'Iconic destination'
The 34-story 250 Vesey is part of the 14-acre Brookfield Place, which includes office space, luxury retail, dining, expansive public spaces and upscale amenities, the brochure said, describing the complex that’s just across from the World Trade Center as “one of the most iconic placemaking destinations in the world.”
The 2 million-plus-square-foot 250 Vesey counts trading firm Jane Street as its largest tenant, CoStar data shows. The building is fully leased.
In Lower Manhattan, even as it may have lagged midtown in its recovery from the pandemic, office leasing last year “roared back from a dismal 2024” and helped push office space out of the market at a pace not seen in 25 years, according to the Alliance for Downtown New York. Demand in the downtown market was driven by major deals at Brookfield Place and One World Trade Center.
For the record
Cushman & Wakefield’s Dale Schlather, Ron Lo Russo, Greg Herman and Pierce Hance are representing Scotiabank on the sublease.