The New York City Board of Education Retirement System has locked in a 78,000-square-foot lease at 55 Water Street in the Financial District, consolidating its operations onto the tower’s entire 50th floor and adding a ground-floor retail presence. The new direct lease runs for 30 years, turning what had been a subtenant arrangement on the same floor into a long-term headquarters play. For Downtown Manhattan, it is another sign that big-block tenants are once again planting their flags in FiDi.
According to The Real Deal, the landlord in the transaction is the Retirement Systems of Alabama. A CBRE team led by Howard Fiddle, Bradley Gerla and Evan Haskell represented the owner, while Marc Shapses of Savills represented BERS. The outlet reported that the asking rent was not disclosed.
Internal documents from the pension system line up with the move. A May 2025 meeting packet authorized BERS to enter into a 30-year lease at 55 Water Street as its sub-sublease on the 50th floor approached expiration. The materials, published by the Board of Education Retirement System, show trustees signed off on pursuing a long-term deal based on the landlord’s proposal.
55 Water Keeps Reeling In Big Tenants
BERS is joining a growing roster of large occupants at 55 Water Street. Last fall, GFI Group renewed its lease and expanded to roughly 129,000 square feet, while engineering firm Jaros, Baum & Bolles and telecom company MetTel each grabbed sizable blocks in recent months. Verra Mobility also secured a roughly 57,000-square-foot sublease, and brokers say tenants have committed to about 275,000 square feet at the property over the past 18 months. Those transactions were reported by brokers and covered in trade outlets such as Commercial Observer.
Why FiDi Landlords Are Feeling Confident
CBRE figures shared with The Real Deal show that Downtown leasing has strengthened this year, with availability tightening and average asking rents pushing above $61 per square foot. Nearly 1.8 million square feet of leasing activity closed in the first five months of the year, according to that broker data.
For BERS, the 30-year deal provides long-term headquarters stability and a street-level footprint in a neighborhood that has been on the upswing. For the owners of 55 Water Street, the lease is another data point in FiDi’s recovery story, underscoring that large tenants are once again willing to commit for the long haul.
