NEW YORK - In a continuing series of big summer leases in the Big Apple, Home Box Office (HBO), a division of New York-based Time Warner Entertainment LLP, has signed a 20-year lease extension for 350,000 sq. ft. at 1100 Avenue of the Americas.
HBO has been headquartered at the building, owned by 1100 Avenue of the Americas Associates, since 1984. HBO also extended its lease for about 243,000 sq. ft. at 1114 Avenue of the Americas.
The value of the HBO net lease, excluding operating costs, is approximately $250 million.
Times Square's revitalization and the building's proximity to Bryant Park were factors in HBO's lease renewal. But New York's burgeoning entertainment/communications industry, short supply of large blocks of space and a strong relationship with the building's owner played a major role as well, according to Bruce Mosler, executive vice president at New York-based Cushman & Wakefield, which negotiated the lease on behalf of the building's owner.
"New York is the financial capital of the world, but it's quickly become the entertainment capital of the world, too," says Mosler. "We're seeing a real dearth of big blocks of space, which is another thing that made this building attractive. It's a very tight marketplace."
HBO's lease at 1100 runs through Dec. 31, 2018, and includes an option for another seven years.