MetLife Building | Commercial Real Estate NYC | Tishman Speyer

Properties

Properties / North America / NY, NJ, CT, MA / New York

Our platform at work

The acquisition of the MetLife Building demonstrated not only a keen understanding of the property’s intrinsic value, but also the subsequent maximization of that value.

200 Park Avenue
New York, NY 10166

A deeper look at : The MetLife Building

When Tishman Speyer acquired the MetLife Building in 2005, we leveraged our expertise in every aspect of real estate, including acquisition, development and property management, to identify operational inefficiencies that could yield considerable cost savings. We also identified ways to enhance the tenant and visitor experience to drive rental rates and create other revenue-generating opportunities.

The Property

The MetLife Building at 200 Park Avenue is a premier, Class A, 59-story building that contains 3.1 million rentable square feet and a 252-car parking garage. Soaring 808 feet into the skyline, the building is centered on Park Avenue in the heart of midtown Manhattan. Situated on a 150,700-square-foot parcel atop railroad platforms, the building adjoins Grand Central Terminal to the south, providing direct access to one of the largest and most important transportation hubs in New York City. Over 250,000 commuters, visitors and tenants pass through the building each day.

Our Role

Tishman Speyer replaced many of the building’s existing services with more economical alternatives. We switched to an in-house company to provide tenants with cleaning services; secured regional contracts for engineering, maintenance and security services; and locked in reduced contracts for insurance and utilities. The result: a total reduction in operational costs.
From a leasing perspective, our team negotiated new office leases at significantly higher rents for expiring leases. Our company also strategically maximized the rent in retail areas by repositioning the highest-end retail stores in the spaces that could garner the highest rents.

Working with Moed de Armas & Shannon Architects, Tishman Speyer also initiated an aggressive redevelopment plan to transform the building entries, retail and dining areas, and outdoor spaces to create additional retail value and help position the MetLife Building as one of the top office properties in Manhattan.

The Outcome

Tishman Speyer relocated the visitor center and security turnstiles from the street to the lobby level and reopened the building’s unique viaduct entrances to the public for taxi and car pick-up and drop-off. The accessibility and conveniently located taxi stand created a valuable office tenant amenity and new pedestrian traffic for retailers. We also restored and reinstated the Vanderbilt Avenue entrance to its original design and size, including widening the entrance and recreating its triple height and view to the viaduct above. We raised the ceiling of the Vanderbilt Avenue arcade and installed new lighting that restored the prominence of the Vanderbilt entrance. Tishman Speyer also installed new glass and bronze storefronts on 45th Street, along with new signage and improved exterior lighting, creating an inviting and vibrant streetscape.

Because of its proximity to Grand Central Terminal, the MetLife Building is a high-profile building with sensitive security issues. The property operates a state-of-the-art security system and has an experienced security force trained to secure its 14,000 tenants and 250,000 visitors each day.
Tishman Speyer has an excellent relationship with the New York Metropolitan Transportation Authority and regularly communicates with the MTA about security, shared operations, community events and emergencies.

Summary

By pursuing an aggressive redevelopment initiative, Tishman Speyer enhanced the MetLife Building to be among the most sought-after office spaces in Manhattan, which ultimately generates future value from higher office and retail rents as leases roll over.

The acquisition of the MetLife Building demonstrated not only a keen understanding of the property’s intrinsic value, but also the subsequent maximization of that value.