Bloomberg Renews Nearly 1M-SF Lease at 731 Lexington Avenue
By Mark Hallum May 6, 2024 12:33 pm
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Bloomberg signed an 11-year renewal on its 946,815-square-foot office at 731 Lexington Avenue, a Midtown office tower owned by the Alexander’s real estate investment trust.
The current lease expires in 2029 and this gives Bloomberg a place in the building until 2040, according to Vornado Realty Trust (VNO), which manages and leases the property. Bloomberg has leased space in the Lexington Avenue tower since at least 2004.
Vornado declined to disclose the names of any brokers on the deal.
In an earnings call on Tuesday, Vornado CEO Steven Roth said Bloomberg was previously paying $98 per square foot for the space. Under the new deal, the rent will be between $88.72 per square foot to $108.44 per square foot, depending on the market rate for similar offices when the new lease kicks in.
Bloomberg first reported the story of the lease renewal.
“731 Lexington remains a best-in-class Midtown tower, impeccable in its design by César and Rafael Pelli, and light years ahead of the curve technologically,” Roth, who is also chairman and CEO of Alexander’s, said in a statement. “Bloomberg’s decision to remain is a testament to the rare and enduring quality of the tower as well as to our successful decades-long partnership.”
Bloomberg uses the tower as a workspace for about 7,000 of its 12,000 employees and has expanded its footprint dramatically since it moved into the building. The business news network — founded by former Mayor Michael Bloomberg — started out occupying 697,000 square feet when construction was completed in 2004, according to Vornado.
Known unofficially as Bloomberg Tower, the 1.3 million-square-foot, 56-story building between East 58th and 59th streets has a residential section called One Beacon Court and sits where the Alexander’s department store once stood.
Update: The story was updated to add details about the rent from Vornado’s May 7 earnings call.
Mark Hallum can be reached at mhallum@commercialobserver.com.
