IBM Expands by 93K SF at SL Green’s One Madison Avenue

Tech giant IBM has expanded to a total of 362,092 square feet at One Madison Avenue’s newly completed glass tower.

IBM, which already had at least 270,000 square feet at the 26-story Midtown South office building, signed a 15-year lease and expanded by 92,663 square feet to cover the entire seventh floor, according to landlord SL Green (SLG) Realty. Asking rent was $110 per square foot.

“We are delighted to expand our valued partnership with IBM and support their continued growth and expansion in New York City,” Steven Durels, executive vice president and director of leasing at SL Green, said in a statement. “IBM’s commitment to One Madison Avenue is a testament to the desirability for best-in-class work environments by forward-looking tenants.”

JLL (JLL)’s Patrick Murphy and Winston Schromm brokered the deal for the tenant. Paul Glickman, Alexander Chudnoff, Benjamin Bass and Diana Biasotti — also from JLL — represented the landlord.

Spokespeople for IBM and JLL did not immediately respond to requests for further comment.

IBM signed on to become the anchor tenant at the 1.4 million-square-foot office tower overlooking Madison Square Park in March 2022, originally taking 328,000 square feet, as Commercial Observer previously reported. It’s unclear when IBM slightly downsized to 270,000 square feet. SL Green did not immediately respond to a request for comment.

The firm consolidated from 10 different offices across New York City, bringing all 2,000 employees to One Madison Avenue, where the firm has its own lobby entrance.

“The expansion of IBM’s flagship office at One Madison Avenue reaffirms a long-standing commitment to advance the technology sector in New York City and New York state, with a vibrant and collaborative workspace designed to bring employees, clients and partners together from around the world,” Joanne Wright, senior vice president for transformation and operations at IBM, said in a statement.

One Madison Avenue’s new glass tower was completed in 2024 and designed by architect Kohn Pedersen Fox, according to SL Green. The building features amenities such as a new HVAC system, a rooftop garden, a tenant lounge and a curated retail program for tenants.

Other tenants of the office tower include cybersecurity firm Palo Alto Networks, cryptocurrency exchange Coinbase and fantasy sports and gambling conglomerate Flutter Entertainment.

Isabelle Durso can be reached at idurso@commercialobserver.com.