Microsoft Inks Major Manhattan Lease

Rendering of the rooftop of 122 Fifth Ave. Image courtesy of Bromley Companies

Microsoft has signed a lease for 150,000 square feet at 122 Fifth Ave. in the Flatiron District, the building’s landlord said Monday. The tech giant will expand its New York footprint with the new lease, adding to its existing 200,000 square feet of space in the city.

In a deal first reported by Bloomberg, Microsoft will occupy floors 6-10 in a long-term lease at the boutique office building. Along with other tech firms, Microsoft had been on the hunt for space in the borough for some time.

The lease is the latest move by a big tech firm to lock down office space, bucking the trend of companies downsizing or rethinking their office plans. Back in September, Google announced plans to acquire the 1.3 million-square-foot St. John’s Terminal in Manhattan, while LinkedIn recently purchased its Silicon Valley headquarters for $323 million from RREEF Property Trust.

READ ALSO: Top 5 Office Deals in Manhattan

Owned by The Bromley Cos., 122 Fifth Ave. is a 10-story boutique office property located between 17th and 18th Streets in the Flatiron neighborhood. The building is situated a few blocks south of the famed Flatiron building and one block west of Union Square.

The property is currently in the midst of major renovations, including expanding the building’s floorplates and constructing a new, adjacent building to be merged with the original structure. Plans also call for a 13,000-square-foot roof deck for tenants. The 300,000-square-foot building was originally built in 1900 and was purchased by Bromley in 1979.

A Newmark team of David Falk, Eric Cagner, Peter Shimkin, Ben Shapiro, Jordyn Comras and Dylan Weisman represented The Bromley Cos. in the deal, while Microsoft was represented by a JLL team of Lisa Kiell and Randy Abend.

Manhattan’s office vacancy rate plateaued in September, according to recent data from CommericalEdge. While vacancy hit 10.8 percent, well below the national average of 15.4 percent, Manhattan was one of a few major cities that did not record falling vacancy month-over-month.