Universal Music Group NV is in talks with Vornado Realty Trust to take office space at the landlord’s newly upgraded Penn 2 tower in Manhattan, according to people with knowledge of the matter.
Universal Music is discussing a lease that would total roughly 300,000 square feet, according to the people, who said negotiations are ongoing and asked not to be identified discussing private information.
Representatives for Vornado and Universal Music declined to comment.
Vornado has spent years revitalizing buildings around Manhattan’s Penn Station, a major transit hub in the city. The company redeveloped the 31-floor office building, called Penn 2, to give the tower a new facade, lobby and rooftop lounge, among other upgrades.
The office market in New York City has been struggling with vacancies after the pandemic increased remote-work options. But tenants have been gravitating toward newer buildings with more amenities.
On a February earnings call, Steven Roth, Vornado’s CEO, said that the company was “only weeks away” from signing a 300,000-square-foot lease at Penn 2. He also said he expects the tower, which counts Major League Soccer as a tenant as well, to likely be 80% leased by the end of the year.
“Penn 2 is being very well received by tenants and brokers,” Roth said during the February earnings call.
