Vornado Realty Trust’s overhauled Penn 2 office tower above Penn Station is 90% leased after inking two full-floor leases.
Veeva, a cloud software and consulting firm focused on the pharmaceutical and biotech industries, leased 62,223 square feet on the entire 11th floor under a 12-year deal, the landlord said Tuesday. Also, Altana, an artificial intelligence-driven platform that connects companies and governments to manage global supply chains, signed a 10-year lease for the entire 21st floor of the 31-story tower to serve as its headquarters.
Veeva, based in Pleasanton, California, currently has its New York office at 1375 Broadway, while New York-based Altana plans to relocate from 25 Kent Ave. in Williamsburg, Brooklyn.
Penn 2 is also home to such major tenants as Madison Square Garden Entertainment, Universal Music Group and Major League Soccer.
A Vornado spokesperson declined to specify the rent terms.
The tower, part of Vornado’s broader Penn District campus around Penn Station, has emerged as one of midtown’s top-tier office properties, commanding premium rents since leasing first began in January 2024. The building leased 908,000 square feet last year at average starting rents of $109 per square foot, including 231,000 square feet in the fourth quarter at $114 per square foot. In his annual shareholder letter, Vornado Chief Executive Steven Roth said the deals were “well above” initial underwriting.
Roth said he expects the tower to be fully leased this year and anticipates rents in the Penn District could exceed $150 per square foot, in line with nearby Manhattan West and Hudson Yards.
Vornado said it has invested roughly $2.5 billion to redevelop its Penn District portfolio, including Penn 1 and the Farley Building, which houses Facebook parent Meta.
At Penn 2, the redevelopment included adding a triple-height lobby, 16 double-height outdoor loggias, more than 70,000 square feet of outdoor space, a rooftop glass pavilion and a 280-seat event venue.