Human resources tech company Gusto is doubling its footprint at Vornado Realty Trust’s Penn 1, signing a 13-year expansion deal that will bring its space at the Midtown tower to 76,000 square feet.
Gusto inked a 13-year lease for 38,000 square feet on the 47th floor and renewed its existing 38,000-square-foot lease on the 52nd floor for five years, The Real Deal has learned. Gusto will now occupy 76,000 square feet at the 2.5-million-square-foot tower.
The asking rent was $135 per square foot.
CBRE’s Jeff Fisher, Sacha Zarba and Connor Krup represented Gusto in the deal. Vornado’s Josh Glick, Jared Silverman and Anthony Cugini represented the landlord in-house.
Vornado and Gusto declined to comment.
San Francisco-based Gusto provides online payroll, benefits, hiring and other human resources services. Other tenants at Penn 1 include Samsung, Dell, Empire Health, Hartford Insurance, Jacobs Engineering, Morgan Stanley and Wells Fargo.
Penn 1 is the largest office building in Vornado’s Penn District, where the landlord has been upgrading its properties around Penn Station and capitalizing on the booming Class A office market.
Vornado’s $450 million renovation at Penn 1 included new plazas, a curtain wall, elevators, lobbies, LEED certification and other sustainability and carbon-cutting upgrades. It also added 160,000 square feet of food and recreational amenities at the base.
The Penn District and nearby Hudson Yards were Midtown’s third most-active leasing district in the second quarter, with 609,000 square feet of leasing volume, according to CBRE. The area led Midtown in absorption as leasing demand drove down inventory. Availability dropped to 6.7 percent, the tightest in Manhattan, per CBRE.
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