Credit Suisse Renews Lease for Two Floors—or 186,396 SF—at 11 Madison Avenue
By Terence Cullen April 21, 2016 3:29 pmreprints
SL Green Realty Corp. has signed a partial renewal with its anchor tenant at 11 Madison Avenue, the real estate investment trusts executives announced in an earnings call today.
Credit Suisse signed an extension for 186,396 square feet of the 1.1 million square feet it leases at the 84-year-old building, according to an earnings release from the landlord. The renewal with the Swiss banking giant brings its current lease term to 21 years.
The company re-upped on two floors it had the option of vacating earlier than the rest of its space, SL Green Chief Executive Officer Marc Holliday told investors and analysts.
Asking rents at the 2.3-million-square-foot building average $70 per square foot, Mr. Holliday said. He noted it was a discount compared with the Flatiron District average of $90 per square foot.
The banking giant moved in 20 years ago. It had several renewal options when it reconsolidated its foothold in early-2014. The shakeup made room for Sony, which was in the process of signing a 578,791-square-foot deal at 11 Madison Avenue between East 24th and East 25th Streets with then-landlord Sapir Organization. The New York Post noted at the time that the deal included expansion options and a renewal term over the succeeding years.
SL Green closed on the purchase of the building nine months ago in the city’s largest single-asset sale in 2015. The REIT announced last May that it would shell out $2.29 billion for the Art Deco office building, selling off a handful of properties to fund the buy.
Executives said in an earnings call earlier this year that the REIT had hundreds of thousands of square feet in the transaction pipeline. Along with its Credit Suisse renewal at 11 Madison Avenue, SL Green signed a 167,000-square-foot renewal with Omnicom Group at 220 East 42nd Street during the first three months of this year. The marketing and communications firm renewed for another 15 years, as Commercial Observer reported in January, and trimmed its foothold by 300,000 square feet. Steven Durels, SL Green’s leasing chief, said the landlord was in active negotiations with a potential tenant for a 30-year leasehold on the space as an office condominium.