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.
BROOKFLD OFFICE (
BPO
): Free Stock Analysis Report
MORGAN STANLEY (
MS
): Free Stock Analysis Report
WELLS FARGO-NEW (
WFC
): Free Stock Analysis Report
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