NYU Will Vacate Midtown Office Space by June 2027
The Schack Institute of Real Estate will exit its long-term Midtown home as its lease reaches its end.
Updated on Sept. 29, 2026 in Commercial
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New York University will not renew its lease for the 117,000-square-foot space at 11 West 42nd Street when the agreement expires in June 2027. The move ends a tenure that began in 1979 for the university at the Tishman Speyer-owned building.
Why it matters
The departure marks a significant shift for the property near Bryant Park, which is currently carrying $274 million in CMBS debt and a $56 million mezzanine loan. The move prompts an search for new tenants to fill the large vacancy in the Midtown office corridor.
The university occupies 117,000 square feet of the 960,000-square-foot building, which also houses major tenants including Michael Kors and First Citizens Bank. The property was last valued at $555 million in 2023.
The players
New York University
A private research university that has occupied space at 11 West 42nd Street since 1979.
Tishman Speyer
The owner and operator of the 11 West 42nd Street office building and a major developer in the New York City commercial market.
Michael Kors
A luxury fashion company that maintains a 203,000-square-foot corporate office presence in the building.
First Citizens Bank
A financial institution that has occupied 150,000 square feet within the building since 2006.
The details
Tishman Speyer, which owns the building, has already begun touring prospective tenants through the space to prepare for the transition. The departure follows a 2021 lease renewal that included a $30 per square foot tenant-improvement allowance. The building remains active with other major occupants, including First Citizens Bank, which has been in the tower since 2006.
Timeline
1979: NYU debuted in the building.
2006: First Citizens Bank moved into the building.
2021: NYU most recently renewed its lease.
2023: The property was last valued at $555 million.
June 2027: The NYU lease will expire.
The Home Front
This vacancy follows a broader trend of large educational and corporate tenants reevaluating their physical footprints in Midtown office corridors. The move underscores the ongoing challenge of managing commercial debt in a market where asking rents currently average $76.98 per square foot.
Residents and those working in the Bryant Park area should anticipate potential changes to the building's tenant mix and foot traffic patterns as new occupants are sourced. Monitor local commercial real estate news to see how this transition affects the office corridor near Grand Central Terminal.
The takeaway
This departure highlights the shifting landscape for older Midtown office buildings managing significant debt loads. Property owners and commercial stakeholders should keep an eye on how these large vacancies influence asking rents throughout the Grand Central Terminal office district.
Further reading
For more on the changing landscape of Midtown workspaces, read our Commercial section.
Source note: This article includes information reported by Bisnow.
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