PNC Bank Relocates to 83K SF at 437 Madison Avenue

PNC Bank is moving its offices a little farther north in Midtown East, Commercial Observer has learned.

PNC, one of the major banks in the U.S., has signed a 15-year lease for 83,000 square feet on the entire 11th and 12th floors and part of the 14th floor of Sage’s 437 Madison Avenue, according to a source with knowledge of the deal.

The deal represents a relocation and expansion for PNC, which will move from its current 64,941-square-foot office about six blocks south at Barings’ 340 Madison Avenue, the source said.

The source could not provide the asking rent, but a report from Colliers found asking rents in Midtown averaged $80.51 per square foot in April.

Newmark’s David Simson, David Falk, Peter Shimkin and Jonathan Franzel brokered the deal for the tenant. JLL’s Frank Doyle, David Kleiner, Margaux Kelleher, Michael Pallas and Andrew Coe represented the landlord along with Sage’s Michael Lenchner.

“This transaction underscores the strength of Manhattan’s Class A office market and Sage’s drive to secure top-tier tenants,” Lenchner said in a statement. “In a competitive market, we moved swiftly to demonstrate why 437 Madison Avenue offered the best combination of location, amenities and flexibility to meet PNC’s needs. Their selection of our flagship property reaffirms its status as a premier destination for leading financial firms.”

Newmark declined to comment, while spokespeople for PNC and JLL did not immediately respond to requests for comment.

It’s unclear when PNC will move into its new building between East 49th and East 50th streets, but the deal will be the bank’s first relocation in a long time, as it had been at 340 Madison since 2008, as CO previously reported.

News of the deal also comes after Sage and The Travelers Companies closed a $185 million refinance from Wells Fargo for the 40-story office property in June 2021, as CO reported. The loan effectively retired $145 million in debt from Bank of America.

PNC will join several other tenants at 437 Madison, including Santander Bank and accounting firm Armanino, as well as art gallery Eden Gallery in the retail space.

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