Case Study

FOX/News Corporation

FOX and News Corp Go Big and Go Long at 1211 Avenue of the Americas

December 1, 2022

Video camera filming a news anchor

Overview

Patience and perseverance enabled CBRE to select the opportune time to engage the landlord and to negotiate simultaneously two separate documents (one for Fox, the other for News Corp), leveraging scale where beneficial while avoiding cross collateralizing the obligations.

  • From 2008 to 2022, CBRE worked to right size a 1.5 million square foot portfolio sprawled across nine Tri-State locations into a leaner and more efficient 1.152 million square foot single location at 1211 Avenue of the Americas. 
  • In late 2021, CBRE learned that the landlord desired to redevelop the plaza and lobby of the building to allow it to compete with other redeveloped Sixth Avenue buildings.  Coincidentally, FOX also desired to renovate its television studio space located on the ground and 2nd floor.  CBRE knew the time was right to strike to secure significant tenant rights and to shape the landlord’s redevelopment to enhance FOX’s profitable studio operations and protect such from disruption, noise and vibrations. 
  • CBRE negotiated separate leases for FOX and News Corp, tailoring each to their unique corporate goals and timelines, while simultaneously leveraging the power of both organizations collectively to garner greater lease rights.

  • 1.15M

    Total Square Feet

  • 13 & 15

    Year Extensions of Existing Leases

  • Anchor

    Tenant in Redeveloped Building

  • Signage

    On Sixth Avenue and Exclusive Lobby

Proposed exterior plaza, sculpture and signage at 1211 Avenue of the Americas. Rendering courtesy of Ivanhoé Cambridge and KPF.
Proposed exterior plaza, sculpture and signage at 1211 Avenue of the Americas. Rendering courtesy of Ivanhoé Cambridge and KPF.
Proposed exterior plaza, sculpture and signage at 1211 Avenue of the Americas. Rendering courtesy of Ivanhoé Cambridge and KPF.
Proposed exterior plaza, sculpture and signage at 1211 Avenue of the Americas. Rendering courtesy of Ivanhoé Cambridge and KPF.
Existing entrance and signage at 1211 Avenue of the Americas.
Existing entrance and signage at 1211 Avenue of the Americas.

The Solution & Result

  • Taking advantage of market weaknesses due to COVID, CBRE negotiated a 15-year extension over 36 months in advance of FOX’s lease expiration date and a 13-year extension of News Corp’s lease to maximize landlord’s concession package and minimize rental costs.
  • CBRE skillfully negotiated “toggling” lease rights relative to the needs of each entity (e.g., co-branded and separate, distinct signage rights, growth and contraction rights which commingled the others’ occupancy to meet “occupancy thresholds” and the ability to transfer and/or exchange occupied floors between companies, multiple contraction and expansion rights staggered every 2 to 3 years over the term of the lease).
  • CBRE outlined a detailed process governing FOX and News Corp participating in the building’s ICAP tax exemptions based on their respective premises upgrades in the building.

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