Milstein Properties Lands 235 KSF Lease in Manhattan

May 14, 2024

Office Brokerage New York News More Northeast

With this agreement, the tenant doubled its office footprint.

Management consulting firm Bain & Co. has inked a 235,200-square-foot office lease with Milstein Properties at 22 Vanderbilt in Manhattan. CBRE represented both parties; in addition, Brookfield Properties assisted the landlord.

The tenant will relocate from the Brookfield Properties-owned Grace Building and occupy the newly leased space in 2026, thus doubling its office footprint. The company will initially occupy four floors at the 1.1 million-square-foot property.

Originally completed in 1914 as a hotel and converted to office use in 1983, the 22 Vanderbilt tower rises 29 stories and includes nearly 28,000 square feet of retail space across two floors. In 2019, it became subject to a $650 million loan from Brookfield Asset Management, according to CommercialEdge data.

The building recently underwent a full redevelopment, designed by SHoP Architects and completed in 2022. Besides structural and mechanical upgrades, the revamp added more than 275,000 square feet of amenities, including a fitness center, spa, conference center and production studio. Located at 335 Madison Ave., 22 Vanderbilt is adjacent to SUMMIT One Vanderbilt and across from Grand Central Terminal.

Bain & Co. is one of the five new tenants at the property. The other four additions to the roster include Dune Morris and TD Securities, which signed agreements for 80,000 square feet each, Alti Tiedemann Global (40,000 square feet) and Kennedys (25,000 square feet). This leasing activity brought the building’s occupancy to 91 percent. Asking rates varied between $105 and $120, depending on the floor, The Real Deal reported.

CBRE’s John Maher, Christopher Corrinet and Paul Myers represented Bain & Co. The firm’s Jeffrey Fischer and Meghan Allen, along with Paul Amrich, Neil King and Sacha Zarba, represented Milstein Properties. Duncan McCuaig, David Caperna and Paul Massey with Brookfield Properties also assisted the landlord.

Office leasing in Manhattan

Listing rates in Manhattan stood at $71.3 as of March, down 3.9 percent over the year but remaining the highest in the U.S., according to a recent CommercialEdge report. The vacancy rate in the borough clocked in at 17.6 percent, climbing 110 basis points over 12 months yet remaining below the 18.2 percent national figure.

One of the largest recent leases in Manhattan was Bloomberg’s 1 million-square-foot renewal at 731 Lexington Ave. The media company inked an 11-year lease extension, securing its space in the building through 2040.