By Benyamin Davidsons
Three Times Square, a famed office-tower in Midtown Manhattan, is about to undergo a $25 million revamp. The Rudin family, which owns the 30-story building in a joint venture, said they will transform the building into a 21st century workplace destination.
The building, also known as the Thomson Reuters Building, located on 7th Avenue between 42nd Street and 43rd Street, had tapped architects Fox & Fowle some 20 years ago before opening in 2001. As reported by the NY Post, now, it will again use the same architects, now known as FXCollaborative, to tweak the trophy tower for a successful post-pandemic future.
The tower, which offers roughly 855,000 square feet of commercial space, is facing dwindling demand for office space due to the pandemic, along with other commercial buildings. As more businesses and employees have been working remotely, the tower faces the departures of several of its significant tenants over the next 12 months, including Bank of Montreal and FTI Consulting. It now has the daunting task of filling the entire building with newly leased tenants. Citywide, physical office occupancy is still at just 15 percent, and the Times Square area has been particularly hard hit.
Three Times Square was already designed to be energy efficient and does not require heating, with glass curtain walls with metal panels, which also promote natural daylighting. Still rather than struggle to fill the building in a difficult market, and offer discounted pricing and lock in concessions on long term leases, the Rudin family has decided to take this time to undergo upgrades.
The tower, which had served as the headquarters for Reuters Group PLC, will not need extensive improvements, as it already has state-of-the-art air-filtration systems, and already offers private outdoor terraces. FXCollaborative will work on just two major improvements. The first is creating a new, glass-walled, triple-height lobby. Second will be a new space on the 16th floor dedicated for tenants amenities–including a spacious dining area and lounge overlooking Times Square, a conference and events center, as well as a modern fitness center and spa. Rudin Management CEO William Rudin said the upgrades and in particular the lobby will make it a “sanctuary from all that’s happening outside”. The lobby will also install a touchless-entry destination elevator system. Rudin told the Post that asking rents will be in the low $70s per square foot on base floors, and in the mid-$80s for higher floors. Marketing will be led by leasing legend John Cefaly of the Cushman & Wakefield team.