Publishers lead rush to 5 Penn Plaza.

Leasing velocity at the 24-story, 608,000 square feet, Class A office building, the closest within the Penn Plaza district to the new Penn Station, has substantially increased within recent months.

A number of deals have been arranged recently on behalf of the landlord, 461 Eighth Avenue Associates, including, most notably, Thomas Publishing Company.

Thomas, which had been a tenant at the building when it was first built, signed a ten-year 115,000-square foot renewal for four floors.

Another tenant in the building, The Steamfitters Industry Trust Funds, also renewed its lease of 13,562 square feet, for ten years.

Not only have tenants been renewing at 5 Penn Plaza, but new tenants are now calling this building home. Edwards & Kelsey, a prominent engineering firm, negotiated a new lease on the 16th floor; while URS, a construction development firm, expanded from One Penn Plaza to 5 Penn Plaza on the 13th floor.

"What's significant is that this recent activity demonstrates a flight to quality, as many tenants desiring a base in the Penn Plaza district are choosing buildings with improved infrastructure," said Peter Turchin, Senior Vice President at CB Richard Ellis, who together with his team spearheads the leasing agency at 5 Penn Plaza.

"These transactions set the stage for the next two blocks of space that are coming available within the building, namely the CNN penthouse floors in the third quarter of 2004, and the New York State Department of Health space in the first quarter of 2005."

"The announcement that the reconstruction and re-design of Penn Station will begin shortly after the Republican Convention in September, 2004, with completion expected in 2008, makes 5 Penn Plaza one of the most sought-after office locations in the City," added Michael Burgio, co-agent and CBRE Executive Vice President.