September 6, 2022
I.E.S. Plans to Exit NYC Headquarters
Above: IES office as shown on the VTS Marketplace website
Sublease arrangement could possibly allow for the IES to someday return to 120 Wall Street
NEW YORK, NY — The Illuminating Engineering Society (IES) is seeking to sublease its longtime New York City headquarters office in Lower Manhattan. The IES currently occupies a nearly 11,000 square foot portion of 120 Wall Street's 17th floor – a Silverstein Properties building. The office location offers unimpeded views of the East River and Brooklyn Heights. The current long-term lease is set to expire in 2033.
According to IES Executive Director, Colleen Harper, the organization will likely try to find smaller office space in the same general vicinity as the current office, but that will be dependent on the local real estate market, timing and availability. New York Metro area staff members are currently working a hybrid home/office schedule that has them in the office 2-3 days per week. The sublease is listed for immediate availability, but no employees have moved out yet.
This appears to be a significant cost-cutting measure for the non-profit organization that has been challenged in recent years with vastly reduced revenues due to significantly lower live event revenues since the onset of the COVID pandemic in early 2020. In its most recent tax filing, the IES cited $513,367 in occupancy costs – which covers numerous office expenses including rent, property insurance, heat, light, power and other utility expenses.
If the organization shifts to a virtual office during a temporary, interim transition or even something longer term, the IES staff seems ready to adapt. Harper shared, "We currently have a couple full-time remote employees and not everyone is in the office every day due to our hybrid model, so we conduct all of our meetings on Zoom already and that practice will continue. Fortunately, everyone became very comfortable with Zoom while working from home during COVID."
The details of the IES lease agreement and possible sublease terms are not public, but unlike a broken lease contract, a sublease arrangement could possibly keep the door open for the IES to someday return to 120 Wall Street if it is financially feasible to do so.
