Kyndryl Makes One Vanderbilt Its Global HQ

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Kyndryl, a future spinoff of IBM’s IT services division, will make its global headquarters at SL Green Realty Corp.’s One Vanderbilt, Commercial Observer has learned. 

The company signed a nine-year lease for 22,531 square feet at the brand-new tower near Grand Central Terminal, according to information obtained by CO. Kyndryl will occupy part of the 15th floor in the 77-story tower. 

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Patrick Murphy, Winston Schromm and Will Yeatman of Cushman & Wakefield represented Kyndryl. CBRE’s Robert Alexander, Ryan Alexander, Alex D’Amario and Emily Jones handled the deal for the landlord. Asking rents on that floor were $145 per square foot.

In October, IBM announced that it would split off its managed infrastructure services into an independent business, then named it Kyndryl in April. The division, which is expected to finalize its independence by the end of the year, employs 90,000 people globally, according to CNN. Their expected move-in date is in the third quarter of this year.

The deal brings One Vanderbilt, which opened last year, to 81 percent leased. Other tenants who have taken space at the tower include financial services firms Nearwater Capital; Carlyle Group; and Oak Hill Advisors, which has close to 70,000 square feet across the 16th and 15th floors, making it Kyndryl’s new neighbor.

SL Green will also take space at its own property for its recently launched flex office brand, Altus Suites. Offices on the 54th floor will be available for three- to 10-year terms.