IBM just lately signed a 16-year lease to anchor SL Inexperienced’s One Madison Ave. — a 1.4-million-square-foot workplace tower within the Flatiron District — in what has grow to be the most important lease deal for a New York City office space to date this yr. The Armonk, N.Y.-based tech firm will occupy 328,000 sq. ft within the yet-to-be-completed constructing. The lease covers parts of the bottom ground, together with flooring two and 7, in addition to the whole lot of flooring eight by way of 10.
Notably, the deal included different asking rates for the varied areas. For example, the asking lease for flooring two by way of 9 was $115 per sq. foot, whereas it was $160 per sq. foot for the tenth ground. The tenant was represented by Patrick Murphy, Josh Kuriloff and Winston Schromm of Cushman & Wakefield. Paul Glickman, Alex Chudnoff, Diana Biasotti and Ben Bass of JLL represented the owner.
“We’re extraordinarily proud to welcome IBM to One Madison Avenue,” mentioned Andrew Mathias, president of SL Inexperienced. “IBM is a perfect anchor tenant for One Madison, which was designed for precisely this sort of forward-thinking workplace person.”
“Our new downtown hub will create a contemporary and dynamic expertise for our staff, our purchasers and our ecosystem companions,” mentioned Joanne Wright, IBM’s vp of enterprise operations and providers. “We see New York as a rare middle of expertise and innovation, and we’re assured our new dwelling at One Madison will assist appeal to the sort of expertise we have to maintain IBM on the vanguard of innovation.”
IBM has been on the lookout for an appropriate location to consolidate a number of of its present Manhattan workplaces, together with 590 Madison Ave. and 51 Astor Place. The corporate’s footprint at One Madison shall be smaller than the mixed sq. footage of its older workplace areas, however it’s going to profit from a bunch of facilities that shall be added in the course of the improvement, which is being led by Kohn Pedersen Fox Associates and is predicted to be accomplished in November 2023.
In 2005, SL Inexperienced paid MetLife $918 million for One Madison Avenue and later introduced it will assemble a brand new glass tower above the present 900,000-square-foot limestone construction. As soon as accomplished, the tower will function a DOAS HVAC system to flow into contemporary outdoors air; a 13,000-square-foot, full-service restaurant; a ten,000-square-foot artisanal meals market; a 7,000-square-foot, tenant-only, club-style lounge; and a 5,000-square-foot shared tenant roof deck. Moreover, IBM will also have a client center to showcase its synthetic intelligence and hybrid cloud applied sciences.
One Madison Ave.’s occupancy price at present stands at roughly 30% after Chelsea Piers Health additionally signed a 20-year lease for 56,000 square feet on the constructing some 5 months earlier. Based on CommercialEdge knowledge for January, Manhattan’s office vacancy hit 12.8%, with the Gramercy Park submarket (which incorporates the Flatiron District the place the One Madison improvement is unfolding) near the metro’s common at 12.4%.