The New York City Department for the Aging (DFTA) is considering a move to the iconic 14 Wall Street, potentially shifting its offices from the city-owned Court Square Building. Public review is pending for the application detailing this significant real estate decision, which could see the agency become a tenant in the privately-owned Financial District skyscraper. The asking rent for space in 14 Wall Street was last quoted at $50 per square foot for the 20th floor the previous year, adding financial weight to this potential relocation.
While details are still under wraps and awaiting public examination of the DFTA’s application, the move to 14 Wall Street signals a potential shift in operational strategy for the department. It remains unclear if brokers are involved in this deal, and while a spokesperson for CBRE, the leasing agency for 14 Wall Street, declined to comment, the application itself sheds light on the reasons behind this contemplated change.
The DFTA has been situated in the Court Square Building, a city-owned property, since the late 1980s. However, in its application, the department articulates challenges with its current 136,000-square-foot space. The core issue revolves around inefficiency. The application highlights that the existing building is in need of upgrades, and the irregular floor plates hinder effective space utilization. This is particularly concerning given that approximately 150 clients, predominantly seniors, visit the agency daily for essential services. With New York City’s aging population, this number is projected to increase, further straining the current facilities.
Moving to 14 Wall Street is presented as a solution to these operational challenges. The DFTA application emphasizes that the “more compact and modern layout” of the office space at 14 Wall Street would be significantly “more suitable for agency operations” compared to their present configuration. If approved, the relocation would involve 329 full-time city employees and an additional 146 part-time staff members.
Beyond internal benefits for the DFTA, this potential lease at 14 Wall Street carries positive implications for the Lower Manhattan office market. For the first time in nearly four decades, the DFTA would be paying rent to a private landlord, injecting revenue into the commercial real estate sector. 14 Wall Street, an 840,000-square-foot building, saw a majority stake acquisition 12 years prior by Rovt, a Ukrainian-born billionaire, for $294.4 million, underscoring the significant private investment in this landmark property.
Looking ahead, the Court Square building will not remain vacant. The city plans to renovate the space vacated by the DFTA to accommodate another city agency, ensuring continued public service utilization of the property. However, the timeline for these renovations remains unspecified. The potential move of the Department for the Aging to 14 Wall Street represents a significant development for both the agency and the Lower Manhattan commercial landscape.
