Law firm Nutter is expanding its office space at Durst Organization’s 5 Grand Central East, a 30-story office tower near Grand Central Terminal. The firm has signed a deal to renew its existing 5,719 square feet on the 27th floor and add another 5,719 square feet on the entire 25th floor, bringing its total footprint to 11,438 square feet.
The deal reflects the growing demand for office space in the Grand Central East submarket, which has seen a 127 percent increase in demand since 2021, driven primarily by tenants in the finance, insurance, and real estate industries.
Office Market Surge
Jody Durst, president of Durst Organization, said the Manhattan office leasing market is surging, especially for Class A spaces in transit-accessible locations such as Grand Central East. Nutter’s decision to expand at 5 Grand Central East reflects the desirability of the area and Durst’s long-term investment in its buildings.
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The length of the lease was not provided, but the asking rent was $80 per square foot, according to Durst. CBRE’s Michael Joyce and Trevor Larkin brokered the deal for Nutter, while Durst was represented in-house by Tom Bow, Ashlea Aaron, Bailey Caliban, and Sayo Kamara.
Grand Central East Submarket
The Grand Central East submarket, which includes the area between East 38th and East 47th streets from Park Avenue to Second Avenue, has seen a significant increase in demand for office space. Tenants in the submarket are looking for more office space than they used to, with the average space sought increasing from 3.3 million square feet in 2021 to 6.6 million square feet last year, according to data from commercial real estate software firm VTS.
Nutter, which was founded in 1879, has been a tenant in Durst’s office building since 2022. Michael Scott, co-managing partner of Nutter, said 5 Grand Central East is “the right location for our clients and our team as we grow.”
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Investment in the Submarket
As part of its investment in the Grand Central East submarket, Durst is deploying $16 million in capital investments at 5 Grand Central East, including new HVAC systems and a new building management system. Other tenants at 5 Grand Central East include general contractor Clune Construction, recruitment firm Abacus Group, and the New York City headquarters of the state agency Empire State Development.
The expansion of Nutter at 5 Grand Central East is a significant development in the Grand Central East submarket, and it reflects the growing demand for office space in the area. With its prime location and amenities, 5 Grand Central East is an attractive option for businesses looking to establish or expand their presence in the area.
