E.ON N.A. Subleases Chrysler Building Space

March 2, 2007 by jack petrie.

Deal Enables E.ON To Sublease Its 10,600 rsf to Travelport, Ltd.

CRESA Partners has negotiated a deal enabling E.ON North America, Inc., to sublease 10,612 rentable square feet (rsf) to Travelport, Ltd. at the Chrysler Building at 405 Lexington Avenue. E.ON North America is a subsidiary of a German-based utility and energy firm.
 

Former Cendant Corporation Subsidiary

Travelport, Inc., previously located at 9 West 57^th Street, will take immediate occupancy of the entire 57^th floor for a term of four years and three months.  The subtenant was sold in June of last year by Cendant Corporation to an affiliate of The Blackstone Group for $4.3 billion.  

“Many international companies are beginning to question triple-digit rents in trophy buildings, debating whether the cost provides enough value,” says Mr. Petrie. “Some, such as E.ON, are choosing to sublease their properties, and redirect their resources.”    

German-American Chamber of Commerce Members

According to Mr. Petrie, Altana AG, a German pharmaceutical firm, has also engaged CRESA Partners to dispose of its office space at 712 Fifth Avenue. Both E.ON and Altana are members of the German-American Chamber of Commerce, whose many members have worked with CRESA Partners on both leasing and disposition transactions.

“With rents continuing to escalate, all companies need to reevaluate their space and their needs,” says Mr. Petrie. “If a tenant is paying exorbitant prices, but is not getting enough value out of the space, it should consider subleasing its current space and looking to relocate to a more affordable building.”   

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