Blackstone Plans to Expand 345 Park Avenue Headquarters by 340K SF
By Anna Staropoli June 13, 2024 12:22 pm
reprints
Blackstone is creeping closer to an expansion at Rudin’s 345 Park Avenue.
The private equity company is finalizing a deal that would expand its headquarters to 1.06 million square feet. Once completed, the deal would keep Blackstone in Rudin’s Midtown office tower for the next 10 years.
The asking rents are unclear, though, in 2021, CoStar Group data estimated that rents in the tower ranged between $84 and $103 per square foot. Business Insider first reported the negotiations.
“We are expanding our commitment to our New York-based workforce, Midtown Manhattan and New York City with this extension,” a Blackstone spokesperson told Commercial Observer via email. “The Rudin organization continues to be a wonderful long-term partner to our firm. We are excited that 345 Park Avenue will remain our global headquarters.”
Blackstone has leased office space at 345 Park for more than 30 years. The company started with 70,000 square feet across two floors, but has since added an extra zero, expanding to roughly 720,000 square feet across 21 floors. That lease, however, is slated to expire in June 2027, per CoStar.
With the impending expansion, Blackstone’s already dominant presence in Rudin’s 1.9 million-square-foot tower would increase from 42 to 55 percent, with offices across 28 of the total 44 floors. Such a hold would rank the Blackstone deal as New York City’s largest commercial office lease since 2022, and the fourth-largest lease deal since 2019, according to CoStar.
The expanded lease would also include amenities such as a fitness center for Blackstone employees.
“For over 30 years, Blackstone has proudly maintained its global headquarters at 345 Park Avenue, and we look forward to continuing this strong partnership,” a spokesperson for Rudin told Commercial Observer via email. “The decision of a premier financial services firm such as Blackstone to extend and expand its footprint is a testament to the long-term resiliency of New York City.”
The time frame for the deal remains unclear, though Blackstone is no stranger to expanding its office presence, despite Midtown’s post-pandemic office difficulties. In 2021, the private equity company upped its lease in the building by 80,000 square feet. The following year, Blackstone also expanded its presence at 601 Lexington Avenue by 200,000 square feet.
Anna Staropoli can be reached at astaropoli@commercialobserver.com.
