Digital payment processing firm PayPal signed one of New York’s largest office leases last year as it expands its footprint in a neighborhood that houses major corporate giants Google and Disney.
PayPal in December signed a 261,000-square-foot, 10-year lease at the combined 345 Hudson St. and 555 Greenwich St. office complex in Hudson Square, landlord Hudson Square Properties, a joint venture of Trinity Church NYC, Norges Bank Investment Management and Hines, said Monday in a statement.
PayPal will occupy three floors at 345 Hudson across the interconnected buildings, a Hudson Square Properties spokesperson told CoStar News, declining to specify the rent terms. The complex combined the 17-story, 860,000-square-foot art deco property at 345 Hudson — originally built for massive printing presses in 1931 — with 555 Greenwich, New York’s first speculative office building to begin construction during the pandemic. The combined full-block property spans more than 1 million square feet.
"New York has always been at the heart of global commerce and innovation, making it the perfect location for PayPal's continued growth,” PayPal told CoStar News in an email. PayPal is contributing to New York’s “thriving fintech ecosystem” while occupying a premium “workplace that fosters collaboration and creativity."
PayPal is currently nearby in the West Village at 95 Morton St., according to the Hudson Square Properties spokesperson. The property is owned by Meadow Partners, CoStar data shows. Its footprint there spans under 100,000 square feet, according to the New York Post, which earlier reported the new lease. The property is also known as 117 Barrow St.
PayPal declined to comment on a plan for that space.
Global expansion
San Jose, California-based PayPal has been expanding its office footprint worldwide. In April, it opened a Dubai regional headquarters, the first in the Middle East, and signed a 40,000-square-foot lease atop 76 Southbank in London. Back home, it’s also expanded in other markets including Austin, Texas.
The Hudson Square lease adds to what was already Manhattan's best year for office leasing volume since at least 2019 as demand for top-tier office space drove top-dollar rent deals to record highs. Demand by tenants seeking new or renovated properties, especially for the tech sector, has led to Manhattan’s priciest leases jumping to record highs, a JLL study found.
Hudson Square, bordered by Tribeca, the West Village and SoHo with the Hudson River to the west, has transformed from a former printing and warehouse manufacturing district into a residential, office and retail area since a rezoning more than 10 years ago.
Beyond serving as major corporate campuses for big names including Google and Disney, it’s also attracted new tenants such as bedding label Brooklinen and marketing firm Red Antler in relocations from Brooklyn. Upscale gym Equinox has opened in the neighborhood, while celebrity chef Flynn McGarry recently debuted a restaurant called Cove.
As part of the 13-building Hudson Square Properties portfolio, employees have access to over 100,000 square feet of shared amenities — including rooftop terraces, lobby lounges and curated programming.
For the record
A CBRE team led by Vice Chairmen Paul Amrich, Howard Fiddle and Neil King represented Hudson Square Properties in this transaction. PayPal was represented by Freddie Fackelmayer and Sacha Zarba of CBRE.