New York: KKR & Co. is expanding its offices at the building that houses its headquarters in Manhattan’s Hudson Yards.
The private equity firm signed a lease for more than 200,000 square feet (18,580 square meters) of additional space at 30 Hudson Yards “- offices that Meta Platforms Inc. is leaving behind, according to a person familiar with the matter, who asked not to be identified citing private information.
Spokespeople for landlord Related Cos. and KKR didn’t immediately respond to requests for comment.
KKR already owns more than 300,000 square feet of the top 10 floors at 30 Hudson. In 2021, the company bought a majority stake in the observation deck at the tower, the highest viewing platform in the Western hemisphere, for more than $500 million.
The private equity firm’s expansion comes at a tough time for New York offices, with the supply of available space near record highs. Major technology companies, which had been snapping up office space in prior years, are now pulling back amid cost cuts and layoffs.
Facebook’s parent company, Meta, had declined the option to renew its lease at 30 and 55 Hudson Yards that runs through 2024.
That’s created an opening for some firms in the finance and legal sectors that are looking to expand and gain spots at newer developments. Last month, Ken Griffin’s Citadel confirmed plans to build a massive new tower in Manhattan to consolidate its offices in the city. Hedge fund D.E. Shaw and private equity shop Blue Owl Capital Inc. have signed new leases in the past few months.
Late last year, KKR backed out of talks to take space at Tishman Speyer’s Morgan North project.