CBRE Extends Manhattan Lease, Takes On Triple Duty at Trophy Tower

July 12, 2024

Office Brokerage New York News More Northeast

The firm has been a tenant at the property for nearly four decades.

CBRE, a longtime tenant at 200 Park Ave. in Manhattan, is extending its lease at the iconic Class A+ office tower also known as the MetLife Building. The firm is also taking over the duties of exclusive leasing agent, property and asset manager. Irvine Co. owns the 3.1 million-square-foot skyscraper.

CBRE will continue to lease approximately 180,000 square feet into 2037. The company has been a tenant at 200 Park Ave. for 36 years.

In August 2020, CBRE signed a new six-year lease for an additional 44,612 square feet at the trophy tower. The new space was on the 18th floor and enabled the global commercial real estate services firm to consolidate its Advisory Services business line in one location. CBRE occupies the 18th, 19th, 20th and 22nd floors, as well as parts of the 20th and 27th floors.

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The firm plans to make a significant reinvestment in its current office space, to foster increased collaboration, connectivity and partnership, and also take space in the lobby, which will be exclusively used as branded space for its employees, clients and colleagues visiting from other offices. CBRE currently has more than 130,000 employees working in more than 100 countries.

Taking over multiple assignments

CBRE assumes the leasing, property and asset management responsibilities from Tishman Speyer, which had acquired the skyscraper in 2005 from MetLife for nearly $1.8 billion. The deal also included the California-based Irvine Co., which became the majority stakeholder over time. The New York Post reported that Irvine had taken advantage of a contractual right to buy out Tishman Speyer’s remaining equity and take control of the building.

Mary Ann Tighe and Howard Fiddle will head up the CBRE leasing team. Tom Lloyd and Pia Silvestri will oversee property management while Joe Mancuso and Ed Guiltinan of CBRE Investment Management will handle asset management.

Trophy tower history

Completed in 1963, the building rises atop two levels of railroad tracks leading into Grand Central Terminal. Back then, the tower was known as the Pan Am Building because it served as the headquarters of Pan American World Airways. MetLife bought the trophy asset in 1981 and used it as its headquarters. In 2002, the building underwent complete renovation.

After the 2005 sale, MetLife retained its naming and signage rights. In December 2023, the company also signed an 11-year lease extension to maintain its headquarters at the skyscraper through 2038. MetLife has been leasing the entire third and sixth floors, as well as portions of the mezzanine, fourth and fifth floors, totaling about 400,000 square feet.

Other tenants include Barclays, Mitsui & Co., Lendlease Corp., Winston & Strawn, Dreyfus Corp. and Bank of America. Between 2020 and December 2023, the owners signed more than 800,000 square feet of new leases, extensions and renewals.

The government of Ireland was among those inking a deal in January 2023 to move from 345 Park Ave. to the MetLife Building. The 43,108-square-foot space houses the Consulate General of Ireland and the rest of Ireland House, the Irish government’s representative office in the city, as well as the country’s trade, tourism and investment agencies, Irish Food Board, Ireland Funds and CIE tours.

Multi-year makeover

The 58-story building, which is 97 percent leased, recently had a $200 million multi-year makeover transforming it to meet the needs of the modern workforce with a focus on creating a welcoming, hospitality-driven environment.

Upgrades included a significant lobby renovation as well as the addition of new premium dining experiences, together with a health and wellness center, a conferencing facility, expansive landscaped terrace and public art exhibits. The building’s direct connection to Grand Central Terminal was also strengthened.