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Computer Associates Signs Lease for New York City Office

Posted on: Tuesday, 20 September 2005, 21:00 CDT

Sep. 20--Computer Associates International Inc., as expected, yesterday said it signed a lease for a new midtown Manhattan office, but stressed it will continue to have a "large presence" on Long Island.

The new office, which occupies about 67,000 square feet on three floors of a building at 520 Madison Ave., will accommodate about 120 people, though spokeswoman Michelle Healy said only about half will be permanent. CA will move in in February.

Healy declined to discuss the cost of the long-term lease, but an expert said property in the area runs "conservatively" for $60 to $70 a square foot, or at least $4 million a year.

"It's a decent-size space," said Jonathan Anapol, president of Prime Manhattan Realty, which was not involved in the transaction.

Despite CA's large presence on Long Island, where some 2,100 employees work, opening a Manhattan office isn't unusual.

"Certainly Microsoft and everybody else has offices here, so it's not out of the question," Anapol said. "For most companies, especially those of larger size, there's a need to have a presence in Manhattan."

In July, CA said it would trim 800 staff positions by year's end to cut expenses by $75 million annually.

Yesterday, CA said it will move certain office functions to Manhattan permanently, including investor relations and treasury. Last month, the company for the first time held its annual shareholders' meeting in Manhattan.

In announcing the new office, CA said it'll address "the global nature of our business and customers," and noted that many large customers have a presence there or travel through Manhattan regularly. "It is an easy spot to meet and do business," CA said.

The company plans to maintain a recently upgraded office in downtown Manhattan, which will remain primarily a sales office, Healy said.

In addition to space for finance, marketing and communications staff, the office also will have what CA called "touchdown" space for those passing through the office.

Some top-level executives will divide time between the new office and the Islandia headquarters, even as they spend considerable time on the road, Healy said.

"Several members of senior management will have offices in both locations, but headquarters remains in Islandia," she said in an e-mail.

The 23-year-old building, owned by Tishman Speyers, sits between 53rd and 54th streets.

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CA, MSFT,

Source: Newsday, Melville, N.Y.

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