Leasing Surge Takes Manhattan Tower to Full Occupancy

535 Madison. Image courtesy of Park Tower Group

Lease expansions/extensions by three current tenants at 535 Madison, a 37-story, 480,000-square-foot office tower in Manhattan’s Plaza District, have brought the building to full occupancy, owner Park Tower Group announced.

Perhaps almost as important, Park Tower Group reported that daily headcounts at the Class A property have topped 94 percent, nearing the pre-pandemic level.

The lease extensions by Bain Capital, FTV Management Co. and Garda Capital Partners total 39,315 square feet.

• Bain Capital NY LLC signed a 14,765-square-foot, 11-year lease for the entire 30th floor, doubling its space in the building by adding to its full-floor space on the 29th floor. The investment firm was represented by Bryan Boisi and Connor Barnes of Cushman & Wakefield
• FTV Management Co., L.P. is expanding into 12,275 square feet (the entire 33rd floor) as part of a 13-year lease, while extending its same-sized lease of the entire 32nd floor by eight years. The investment firm was represented by Howard Grufferman and Reid Longley of Colliers.
• Garda Capital Partners LP signed a 12,275-square-foot, 10-year lease for the entire 34th floor, relocating and expanding from its previous 3,824-square-foot space on the 21st floor. The asset management firm was represented by Brent Ozarowski and Kevin Sullivan of Newmark.

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A CBRE team of Brian Gell, vice chairman, and Laurence Briody, executive vice president, represented Park Tower Group in all three transactions.

Headcount hunting

535 Madison has outpaced average NYC daily population percentages since at least the summer of 2021, Park Tower Group reported, based on Kastle Systems data. For example, the building passed 85 percent for the first time on March 1, when the metro area’s average was just 33 percent.

“We have focused throughout the pandemic on ensuring that our tenants feel safe and comfortable coming into and fully utilizing 535 Madison,” Marian Klein, president at Park Tower Group, which is headquartered in the tower, told Commercial Property Executive.

535 Madison Lobby. Image courtesy of Park Tower Group

She then described some of the reasons the building has excelled at generating high daily headcounts, such as “a touchless street-to-office experience,” with security guards assisting in elevator operation. Building staff was fully vaccinated.

The building’s protocols include temperature scans, mask requirements in all common areas, elevator capacity limits and enhanced cleaning. A reservation system was adopted for the fitness center, and more bike racks were added, to accommodate pandemic-driven transportation shifts.

Barely a week ago, SL Green landed a sizable sublease with global recruitment agency Phaidon International at the landlord’s 711 Third Ave. in Manhattan. Cushman & Wakefield arranged the transaction, which totaled 71,239 square feet.