IBM Expands Manhattan Office

IBM has inked a 15-year, 92,663-square-foot lease expansion at SL Green Realty Corp.’s One Madison Avenue in Manhattan. The agreement covers the property’s entire seventh floor, for which the asking rent was $110 per square foot, the Commercial Observer reported.

JLL’s Vice Chairman Patrick Murphy and Vice President Winston Schromm arranged the deal on behalf of IBM. SL Green was represented by JLL Vice Chairmen Paul Glickman and Alex Chudnoff, together with Executive Managing Director Ben Bass and Senior Vice President Diana Biasotti.

In 2022, IBM signed a 16-year, 270,000-square-foot lease at One Madison. The five-story office space opened September of last year.

SL Green acquired One Madison from MetLife Real Estate Investment in 2005. The 1.4-million-square-foot property traded for $801.7 million, according to CommercialEdge information. Last month, SL Green and its joint venture partners finalized a $1.25 billion mortgage modification and extension for the property, extending the final maturity date through November 2027.

A major adaptive reuse project

Originally built in 1893 to designs by Napoleon Le Brun & Sons, One Madison rises 26 stories in Manhattan’s Midtown South. SL Green, in a joint venture with National Pension Service of Korea and Hines, completed the property’s $2.3 billion redevelopment in September 2023. Architect Kohn Pedersen Fox oversaw the renovation, aiming to achieve LEED Gold certification. Amenities include an HVAC system that circulates 100 percent fresh air and a 7,000-square-foot tenant-only lounge, as well as several eateries and retail spaces.

One Madison’s tenant roster features Franklin Templeton, Coinbase and Palo Alto Networks, according to CommercialEdge. With IBM’s expansion, the office building is now 72 percent leased.

The office high-rise is across the road from Madison Square Park and the 23rd Street subway station and within a half mile of the Flatiron Building and Empire State Building.