Palo Alto Networks Leases 29K SF in One Madison Avenue
By Mark Hallum March 27, 2023 12:25 pm
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A West Coast tech company is putting down roots in the Flatiron District.
Cybersecurity firm Palo Alto Networks signed a 10-year lease for 28,903 square feet on the entire 26th floor of SL Green Realty’s One Madison Avenue, according to a source with knowledge of the deal. The New York Post first reported the deal.
SL Green did not respond to a request for comment. Move-in date and the names of the brokers are unclear, but the rent was $182 per square foot for the first five years and $192 per square foot after that, the source said.
Leasing in the building, just two blocks east of the Flatiron Building, has seen momentum since SL Green broke ground on the project in 2020, with Miami-based 777 Partners signing a 15-year lease for 18,476 square feet in January for its first New York City office.
In December, it was announced that restaurateur Daniel Boulud will open a 16,000-square-foot steakhouse at the base of the One Madison while also catering to the 7,000-square-foot tenant lounge and 11,000-square-foot rooftop event space, CO reported at the time.
September saw Franklin Templeton Investments signing one of the biggest leases so far this year in New York City with a 15-year deal for 347,474 square feet, a footprint that will span floors 11 through 22, CO previously reported. The asking rent was $145 per square foot for this deal, according to SL Green.
A year ago, IBM signed on to be the anchor tenant with a 16-year deal for 328,000 square feet from the ground to the seventh floor of the building, where the tenant would consolidate 10 different office spaces under one roof.
SL Green is gut-renovating and adding a new 500,000-square-foot glass tower on top of the 1.4 million-square-foot building. Work is scheduled for completion in late 2023.
Update: The story has been updated to include the terms of the deal.
Mark Hallum can be reached at mhallum@commercialobserver.com.
