United Nations Consolidates With 425K-SF Renewal at 2 U.N. Plaza

The United Nations is about to become even more united, as a new office expansion consolidates its operations on Manhattan’s East Side.

The U.N. has signed a lease for 425,190 square feet of space across 26 stories at 2 United Nations Plaza and two stories of retail at 1 United Nations Plaza. The move brings operations that had been split between the buildings together at 2 United Nations Plaza.

New York Business Journal first reported the story.

Newmark’s Jim Saunders and Jason Perla represented the U.N. with support from Roy Abernathy, who “led a team which oversaw location strategy, workplace strategy and real estate consulting,” according to a statement from Newmark, which also noted that “the team developed a transformative workplace model tailored to the organization’s international mission, introducing a new way of working that aligns with its global objectives.”

CBRE’s Scott Gottlieb represented the landlord, United Nations Development Corporation (UNDC), a public benefit corporation established by New York State.

The renewal and expansion follows February’s joint announcement from Mayor Eric Adams, Gov. Kathy Hochul and the UNDC of a $500 million development plan for United Nations Plaza that would create more than 1,800 jobs in construction and related professions via “significant infrastructure upgrades, lobby renovations, new building systems and elevated security and sustainability features,” according to Newmark. UNDC plans to issue up to $380 million in bonds to fund the project, with underwriting from Goldman Sachs and Siebert Williams Shank.

“This landmark transaction reaffirms the U.N.’s deep-rooted commitment to New York City as its global diplomatic hub,” Saunders said in a statement. “We are proud to have advised on this project, which will ensure further improvements to operational efficiency and U.N. staff support.”

“This $500 million investment by the United Nations Development Corporation is more proof that New York’s resurgence is in full swing,” Gov. Hochul said in the February statement. “Projects like this create good-paying jobs, drive economic growth, and reinforce our position as the global capital of commerce and diplomacy. When we build, we create opportunity — and there’s no better place for it than right here in Manhattan.”

The project architect is Spacesmith. Cosentini Associates will be the mechanical, electrical, and plumbing engineer. The construction manager will be Turner Construction. The project is expected to take approximately 48 months. 

Larry Getlen can be reached at lgetlen@commercialobserver.com