More NY landlords and commercial tenants are creating “buildings within buildings.” The arrangement creates separate entrances, longer leases and cheaper rents for tenants. It also generates motivation for landlords to provide more building-wide amenities, such as a shared cafeteria.
A tenant with high traffic flows could have its own lobby and elevators, minimizing use of a building’s main entrance. The Polytechnic Institute of New York University recently signed a 15-year lease at Two Metro Tech. The 90,000 sq. ft. space includes a separate entrance, lobby and elevators. Other companies, including SoHo-based WeWork and Extell Development Co. in midtown benefit from similar arrangements.