IBM Inks 328K SF to Anchor SL Green’s One Madison
By Mark Hallum March 15, 2022 10:09 am
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Tech giant IBM has signed on to be the anchor tenant at SL Green Realty Corp.’s yet-to-be-completed One Madison Avenue, the landlord announced.
IBM inked a 16-year, 328,000-square-foot lease for parts of the ground floor and second through seventh floors along with the entire eighth through 10th floors of the planned 26-story tower, SL Green (SLG) said. The firm will consolidate from 10 different offices around the city to One Madison, where it will have its own lobby entrance, the New York Post reported.
“The incredible momentum we’re seeing at One Madison, and across our portfolio, reflects the long-term strength of prime Manhattan office space and leading companies’ unwavering belief in a collaborative work experience that’s only possible in the office,” Andrew Mathias, president of SL Green, said in a statement.
Asking rents for floors two through nine were $115 per square foot and for the tenth floor it was $160 per square foot according to an SL Green spokesperson.
IBM was represented by Patrick Murphy, Josh Kuriloff and Winston Schromm of Cushman & Wakefield (CWK). Paul Glickman, Alex Chudnoff, Diana Biasotti and Ben Bass of JLL (JLL) brokered the deal for SL Green. JLL did not immediately respond to a request for comment.
The tech giant’s deal follows the announcement of One Madison’s first tenant, Chelsea Piers Fitness, which signed a 20-year, 56,000-square-foot lease across four floors at the base of the 1.4 million-square-foot Midtown South office tower.
“Our new downtown hub will create a modern and dynamic experience for our employees, our clients and our ecosystem partners,” Joanne Wright, IBM’s vice president of enterprise operations and services, said in a statement. “We see New York as an extraordinary center of talent and innovation, and we are confident our new home at One Madison will help attract the kind of talent we need to keep IBM at the vanguard of innovation.”
SL Green acquired One Madison from MetLife in 2005 for $918 million and later announced a $2.3 billion plan to gut renovate the existing historic structure and add a new glass tower.
National Pension Service of Korea and Hines acquired a 49.5 percent stake in the development in 2020. SL Green sold off a 25 percent stake in One Madison in December 2021 to an anonymous investor for $259.3 million in equity on the project.
Mark Hallum can be reached at mhallum@commercialobserver.com.
