Bloomberg Expands to Nearly 1 MSF at Manhattan Tower

Bloomberg LP has inked a renewal and expansion lease at SL Green Realty Corp.’s 919 Third Ave., a 1.5 million-square-foot, 47-story office tower in Manhattan, bringing its footprint to 924,876 square feet at the high-rise. CBRE brokered the transaction.

The deal includes a 749,035-square-foot, 11-year lease extension starting March 1, 2029, and a new 175,841-square-foot 15-year expansion.

SL Green paid $500 million for the asset in 2000, acquiring it from Colonnade Properties, CommercialEdge data shows. Last year, the landlord partnered with J.P. Morgan to refinance 919 Third Ave. Aareal Capital Corp., Credit Agricole Corporate and Investment Bank originated a $500 million note to retire a previous loan in the same amount issued by Metropolitan Life Insurance Co. and Pacific Life Insurance Co.

A glimpse inside the renovated tower

Designed by Skidmore, Owings & Merrill, 919 Third Ave. debuted in 1970. In 2022, the tower underwent a $20 million renovation effort. Designer Studios Architecture and general contractor Structure Tone led the revamp, which touched on the lobby. Upgrades included a new ceiling, exterior glass, reception desks and lighting.

The high-rise features floorplates ranging between 30,000 and 48,000 square feet and roughly 12-foot slab heights, as well as three freight and 22 passenger elevators. Amenities at 919 Third Ave. include a coffee bar, bike room and a 19,000-square-foot open-air plaza. The tower’s certifications include LEED Gold, WiredScore Platinum, 2-Star Fitwel and WELL Health-Safety.

Office tenants include law firms such as Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, which committed to 101,394 square feet in 2021, as well as Schulte Roth & Zabel LLP, which renewed its 283,894-square-foot lease for another 15 years in 2014. The retail tenant roster comprises Chase Manhattan Bank, P.J. Clarke’s and One Medical.

Located in Midtown Manhattan, SL Green’s asset is a few blocks from RFR Realty’s Seagram Building, where Blue Owl Capital inked a 238,673-square-foot lease extension and expansion recently.

CBRE Vice Chairmen Howard Fiddle and Chris Mansfield, alongside Senior Vice President Zach Weil and Vice President Ryan Luck, represented Bloomberg. Chairman Robert Alexander, together with Vice Chairmen Ryan Alexander and Taylor Callaghan, as well as Executive Vice President Emily Chabrier, Senior Vice President Alexander D’Amario and Senior Associate Nicole Marshall, represented SL Green.

Bloomberg’s expansion in New York

This deal marked the third time Bloomberg’s presence grew at 919 Third Ave. Its previous expansion—which grew its footprint by 191,207 square feet—closed in 2021. The first expansion rose the company’s footprint by 204,442 square feet in 2016. Bloomberg had initially settled for 350,173 square feet the year before.

As of May, Bloomberg’s Big Apple presence encompassed more than 2.1 million square feet of office space. At the time, the company extended its full-tower lease at Alexander’s Inc.’s 56-story, 946,815-square-foot 731 Lexington Ave., also dubbed Bloomberg Tower. That extension will also take effect in 2029.

Manhattan office vacancy rate inches down

Manhattan office occupancy rates are healing—as vacancy dropped 90 basis points year-over-year—and availability clocked in at 16.8 percent in September, according to a report by CommercialEdge. The borough maintained its title as the priciest office market, with rates averaging $67.93 per square foot.

The shifting outlook in Manhattan’s office real estate trends is reflected by SL Green’s 2024 leasing momentum. Year-to-date, the landlord inked 150 leases in the borough for a total of 2.8 million square feet, including Bloomberg’s recent deal.

Additionally, SL Green expects to sign north of 3.3 million square feet of office leases throughout Manhattan in 2024, based on its arrangements to date and contract pipeline, which includes roughly 1.1 million square feet.

Another one of SL Green’s leases closed at 245 Park Ave., a 1.8 million-square-foot office tower also in Midtown Manhattan. Ares Management renewed and expanded its commitment to 307,336 square feet at the property. Last year, SL Green sold a 49.9 percent stake in the asset to Tokyo-based Mori Trust Co.