WBD’s Continued Consolidation Leads to 309K-sf of Sublease Deals at 30 Hudson Yards

Continued efforts to consolidate operations since WarnerMedia’s merger with Discovery in 2022, the newly created public company Warner Bros. Discovery, Inc. (WBD) has subleased roughly 309,000 square feet of its more than 1.182 million-square-foot space at 30 Hudson Yards. The largest of the two deals, which will convert to direct leases with Related Companies at certain points in the future, was signed by Covington & Burling for 235,479 square feet. The recent signing will see the law firm relocate from the New York Times Building, 620 Eighth Avenue where they have been located since 2007. Covington is planning to move from its current office of approximately 193,623 square feet on the entire 39th through 44th floors sometime in 2025. The second sublease for 73,735 square feet was signed by Susquehanna International Group (SIG), which will see the Pennsylvania-based proprietary trading firm relocate from 140 Broadway. According to city records, WarnerMedia (formerly Time Warner Inc.) had purchased the Hudson Yards condo unit in June 2018 for roughly $1.426 billion, subsequently selling it to Related Companies and Allianz Real Estate one year later in a sale/leaseback transaction for $2.155 billion. The deal had an initial lease term through June 2034 plus (4) 5-year renewal options for all or certain portions of the unit; and the option to surrender up to 10 floors on the 5th anniversary of the June 14, 2019 lease commencement date.

Source:    https://nypost.com/2024/06/09/business/relateds-hudson-yards-inks-2-major-deals-in-covington-amp-burling-susquehanna-international-group/