Legislation agency Akin faces landlord lawsuit around Manhattan sublease program

(Reuters) – As many U.S. law companies seem to reduce their office footprints, Akin Gump Strauss Hauer & Feld is experiencing a new lawsuit from its New York landlord over its ask for to sublease aspect of its Manhattan place of work to Bank of America.

The landlord, Just one Bryant Park LLC, in a Wednesday lawsuit submitted in New York state court docket sought a declaration that its lease agreements with Akin and Lender of The usa permit the landlord to reject the law firm’s ask for to sublet an entire flooring. Financial institution of America is also named as a defendant in the lawsuit.

The landlord, law firm and financial institution have “irreconcilable interpretations” of the language in the lease agreements, the lawsuit mentioned.

Financial institution of The united states is the anchor tenant in the 55-tale skyscraper at A single Bryant Park, which is recognised as the Lender of The us Tower.

A spokesperson for Washington, D.C.-founded Akin did not instantly react to a ask for for comment on Thursday. The company has more than 200 lawyers working in New York, according to its internet site.

Bank of America declined to remark. A lawyer for the landlord did not promptly respond to a request for remark.

The lawsuit does not say why Akin is seeking to sublease the area. Some substantial regulation firms have been downsizing their places of work, notably considering the fact that the COVID-19 pandemic forced agency leaders to rethink their room demands as much more lawyers and personnel expend at the very least aspect of the week operating from household.

Akin is trying to get to sublet the 46th floor of the developing. The organization signed a 203,000-sq.-foot lease in 2006 for flooring 41 by means of 46, in accordance to media reviews. It also reportedly agreed to take the 47th floor in 2007.

The landlord, organization and bank are disputing provisions in their lease agreements regarding when the tenants can sublease area.

The amount of office sublease room in the United States has nearly doubled due to the fact the commencing of the pandemic, in accordance to an April report by commercial authentic estate brokerage CBRE.

Sublease house jumped from 96 million square toes in the first quarter of 2020 to 189 million sq. toes in the 1st quarter of 2023, with about fifty percent of the room claimed as vacant, CBRE mentioned. Authorized solutions accounted for 3% of office environment sublease availability.

The case is A person Bryant Park LLC v. Akin Gump Strauss Hauer & Feld et al, New York County Supreme Courtroom, No. 653721/2023

For 1 Bryant Park: Lori Anker Nott of Rosenberg & Estis

For Akin and Financial institution of The us: Not known

Our Specifications: The Thomson Reuters Believe in Ideas.