Snapchat Snaps Up 200K SF Sublease at Vornado’s Penn 2
The parent company of Snapchat signed a sublease in New York City that won’t vanish after ten seconds.
Snap Inc. agreed to sublease 199,000 square feet at the Vornado Realty Trust’s Penn 2 in Manhattan’s Penn District. The agreement was disclosed in a monthly Colliers report, which noted the deal was the second-largest in Manhattan’s market for the month of July.
Additional details of the sublease, including length, asking rent and even the company giving up space at the Vornado property were not disclosed. Snap did not respond to a request for comment from Crain’s, while Vornado declined to comment beyond confirming the deal was a sublease.
In 2017, Snap signed a 10-year lease for around 300,000 square feet for its new headquarters at Santa Monica Business Park in California. It tacked on another 140,000 square feet in 2021, but began looking to sublease a large chunk of its space a few years later.
It’s far from the only company taking an interest in Penn 2.
Artificial intelligence data firm Altana recently signed a 10-year lease for 62,000 square feet on the 21st floor. A week before that, data firm Veeva Systems signed a 10-year lease for 62,000 square feet on the 11th floor of the building.
In November, mobile banking company Current signed a 10-year lease for a little more than 62,000 square feet on the 23rd floor of Penn 2; the asking rent was $125 per square foot. Data security firm AvePoint signed an 8,000-square-foot lease in March, while French consulting company Capgemini signed a deal for 43,000 square feet at the end of last year.
Other tenants include Madison Square Garden’s corporate offices, Major League Soccer, Verizon and Universal Music Group. All are benefitting from Penn 2’s recent $750 million renovation aimed at attracting blue-chip tenants.
Leasing activity in Manhattan surged in July, according to Colliers, as tenants signed deals for 3.87 million square feet — a 27 percent increase from June and a 28 percent year-over-year rise.
Available office space tightened to 66 million square feet, the lowest supply level since September 2020 and a significant decline from the post-pandemic peak in 2024.
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