After only a year in its 7,400 SF office at West 36th, Bisnow partner VTS is moving again, doubling its space. The leasing and asset management platform has signed a five and a half year lease for the 15,800 SF 11th floor at Equity Office’s 353k SF 114 W 41st.
According to COO Charles Hough, VTS recognized the need for more space in the second half of 2015, once its competitive client win rate climbed over 80%. In order to accommodate this significant rise in new customers and continue to provide top-tier support, VTS had to double its customer success and account management teams in parallel to engineering. It was forced to rent a second space near its current HQ, but needed one that could accommodate the whole team.
“We plan to continue growing at this rate,” Charles tells Bisnow, “so we needed a building that can grow with us.”
Every developer and builder has its own opinion on the best space for a tech company, but Charles says VTS was looking for an inviting space with a bright and open floor plan that would make its team excited every day. Most important was the location. The new HQ is a stone’s throw from Bryant Park, which is not only “a hub of creativity,” but close to many of VTS’s clients and prospects. The new hub is close enough to the old one to add a sense of consistency for employees' commutes.
“All in all,” Charles says, “Bryant Park is a central location that’s convenient for both our employees and customers who frequent our office.”
VTS worked with JLL managing director Jim Wenk, managing director David Kleiner, EVP Patrick Heeg and associate Kevin West to close the deal and dispose of its current space. Equity Office was repped by Newmark Grubb Knight Frank EVP Scott Klau, senior managing director Erik Harris, managing director Ben Shapiro and associate Zach Weil, as well as its own in-house broker team of leasing VP Zachary Freeman and leasing manager Scott Silverstein. Charles says the JLL team was instrumental in helping find the right space.
According to the Commercial Observer, asking prices at the building are estimated to be $74 per SF to $76 per SF, but Empire State Development offered $2M in state tax credits to keep VTS's global HQ in the city until 2021. When asked why the state would be willing to offer so much money, Charles said VTS’s promising job growth numbers and five-year projections played a huge part, as the state knew the company could provide hundreds of new tech jobs and opportunities for New Yorkers as it continued to grow. And with rights on other floors, Charles believes the company can keep expanding over the next five years and remain in the same building.
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