Facebook Nabs 40K SF at Midtown Building Dedicated to Tech Companies
By Nicholas Rizzi December 18, 2018 6:40 pm
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Facebook will move back to 335 Madison Avenue as the building owner pumps $150 million to turn it into a tech campus, a source with knowledge of the deal confirmed to Commercial Observer.
The social media giant grabbed 40,000 square feet for a full-floor of Milstein Properties’ tower between East 43rd and East 44th Streets named The Company Building, Forbes first reported.
Facebook’s lease is part of the first 92,670 square feet Milstein has leased to tech companies since it partnered with former Grand Central Tech co-Founder Matthew Harrigan to start Company this year, the source said. The goal is to offer cheaper space in the entire 29-story tower for tech startups by leasing more expensive offices to large companies like Facebook, according to Forbes.
The 12 deals include 11,920 square feet to cybersecurity company BlueVoyant, 11,870 square feet to media tech company Narrativ and 4,840 square feet to investment platform Republic, the source said.
A Milstein spokesman would not provide the terms of the deal, but the source said asking rents for startups in the building ranged from $65 to $75 per square foot and no brokers were on the deals.
As part of the effort to turn 335 Madison Avenue into a tech campus, Milstein is in the middle of a $150 million renovation of the building which will add a cafeteria, a bar and a gym, Forbes reported. Facebook plans to move in by the end of the month.
Facebook previously leased two-floors in 335 Madison Avenue in 2010 but moved to 100,000 square feet at 770 Broadway in 2014, the New York Daily News reported. It expanded its 770 Broadway offices by another 370,000 square feet in May when it took over J. Crew’s previous space, as CO previously reported.
