Brookfield Office Properties (BPO) recently announced that it has entered into the largest single-asset office lease agreement since 2008 with Morgan Stanley (MS) for 1.2 million square feet of space in New York. The property, One New York Plaza, is a 2.6 million square foot office building located in Lower Manhattan and adjacent to Battery Park.
Morgan Stanley already occupies approximately 816,000 square feet of space in the tower, of which 34,000 square feet has been leased directly from Brookfield and 782,000 square feet through a sublease with Wells Fargo & Company (WFC). As per the new lease agreement, Morgan Stanley will expand its premises by 337,000 square feet, thus bringing the total occupied space in the building to 1,153,000 square feet.
The new lease agreement, which expires in 2029, is a major strategic initiative for Brookfield and reinforces its long-term ties with Morgan Stanley. The deal is also a testament to the strong demographics of the Lower Manhattan market on a long-term basis.
Based in New York, Brookfield is a publicly owned real estate investment firm. The company owns, develops and manages premier office properties in the United States, Canada and Australia. It also provides ancillary real estate service businesses, such as tenant service and amenities. The company mainly invests in high growth and high- barrier-to-entry markets with sustainable cash flows.
Brookfield’s portfolio consists of interests in 108 properties spanning 77 million square feet in the downtown cores of New York, Washington, D.C., Houston, Los Angeles, Denver, Toronto, Calgary, Ottawa, Sydney, Melbourne and Perth, making it the global leader in the management of office assets.
Brookfield currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.
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