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New York City

NYU Will Vacate Midtown Office by June 2027

The Schack Institute of Real Estate will exit its long-term Midtown space when its current lease concludes.

Updated on Sept. 29, 2026 in Commercial

Isometric editorial illustration of a tall, minimalist skyscraper facade against a plain background, representing a vacant office property.
New York University will vacate its 117,000-square-foot office space at 11 West 42nd Street in Midtown Manhattan by June 2027. AI Illustration. Upload story photo >

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New York University will not renew its lease for 117,000 square feet at 11 West 42nd Street, a Midtown property it has occupied since 1979. The university plans to vacate the premises by June 2027.

Why it matters

The decision creates a significant vacancy in a major office building, forcing owner Tishman Speyer to seek new tenants to fill the space. The transition comes as the property manages substantial CMBS debt and a mezzanine loan.

The property, valued at $555 million in 2023, carries $274 million in CMBS debt and $56 million in mezzanine loans. Other major tenants include Michael Kors, which occupies 203,000 square feet, and First Citizens Bank, which uses 150,000 square feet.

The players

New York University

This private research university is a major educational institution that maintains numerous campuses and facilities throughout New York City.

Tishman Speyer

This is a prominent global real estate investment, development, and property management firm that owns and operates office buildings worldwide.

Michael Kors

This is a well-known luxury fashion brand that serves as a primary commercial anchor tenant within the Midtown office building.

First Citizens Bank

This major financial institution provides banking services and maintains a significant physical footprint at the 11 West 42nd Street property.

The details

Tishman Speyer has already begun touring prospective tenants through the 117,000-square-foot office space. This vacancy is revealed through special servicer commentary on the building's current mortgage status.

Timeline

  1. NYU has occupied the building since 1979.

  2. First Citizens Bank moved into the building in 2006.

  3. NYU last renewed its lease in 2021.

  4. The property was most recently valued at $555 million in 2023.

  5. The university will officially vacate the building in June 2027.

Market Landscape

This move highlights the ongoing tenant turnover defining the post-pandemic commercial office vacancy cycle in Manhattan. The departure forces Tishman Speyer to compete in an office market defined by high debt service obligations and evolving spatial needs.

The upcoming vacancy could influence local business activity and foot traffic in the Bryant Park area. Readers should expect potential changes to the building's commercial tenant mix as new companies are recruited to the space.

The takeaway

The end of this long-term lease demonstrates how institutional occupants are reassessing their real estate needs in Midtown. Property owners and investors often face challenges balancing high debt loads with the reality of significant space turnover.

Further reading

For more information on the current state of local office developments, read the Commercial section.

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Is the commercial real estate market in your area getting better or worse?