Minskoff Secures 148 KSF Manhattan Office Lease
A government agency has agreed to occupy the space for 10 years.
The Federal Deposit Insurance Corp. has signed a 10-year office lease to occupy 147,543 square feet at the 1.6 million-square-foot, 1166 Avenue of the Americas in Manhattan. Edward J. Minskoff Equities owns condominium interests comprising floors two through 21—where FDIC will relocate—while Marsh & McLennan Cos. owns and occupies the remaining condominium interests.
JLL together with an EJME in-house team represented the owner, while Colliers led the negotiations on behalf of the tenant. Asking rents for the tower start at $80 per square foot.
The government agency agreed to fully occupy floors eight through 10, as well as partially occupy the seventh floor of the 44-story skyscraper. FDIC will relocate from the Empire State Building, where it occupies roughly 120,000 square feet.
Wells Fargo recently modified the debt on 1166 Avenue of the Americas, extending the maturity dates and altering interest rates on three loans totaling $235 million, according to The Real Deal.
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The tower debuted in 1975 with design services provided by Skidmore, Owings and Merrill. A partnership of Tishman Organization—the predecessor to Tishman Speyer—Stanley Stahl and Arlen Realty developed the building.
1166 Avenue of the Americas is roughly 3 miles northeast of downtown Manhattan, within walking distance of Bryant Park, Grand Central and the Rockefeller Center. Central Park is more than 1 mile from the property.
The WiredScore Gold-certified skyscraper features 39,075 rentable-square-foot floorplates and recently underwent a revamp that introduced a new conference center and destination-dispatch elevators, among other features. Also in the works are a new gym and lounge.
The tenant roster includes CNA Insurance, which recently inked a 40,240-square-foot deal to occupy the space for 15 years, and Axis Insurance, which occupies 40,240 square feet on the tower’s 17th floor.
The JLL team that represented EJME included Vice Chairmen Paul Glickman and Cynthia Wasserberger, as well as Senior Vice President Diana Biasotti, while the in-house EJME crew comprised Executive Vice President Jeffrey Sussman and Vice President Matt Pynn. Colliers Executive Vice President Connor Faught and Vice Chair Sheena Gohil negotiated on behalf of FDIC.
Manhattan’s office leasing activity takes off
Manhattan’s office market closed 2024 with a bang as new leasing activity in the fourth quarter reached 6.7 million square feet, the highest quarterly total since September 2022, according to a report by Cushman & Wakefield.
The strong quarterly activity rounded up the year with an annual total of new leases clocking in at 23.4 million square feet—outperforming 2023 by 30.2 percent—the same source shows. By adding renewals to the mix, Manhattan’s office leasing activity registered 32.4 million square feet, the highest figure since 2019.
Following four quarters marked by office vacancy increases, Manhattan’s rate inched lower by 20 basis points and stood at 23.3 percent in December, the report reveals. Although the market’s absorption rate wrapped up the year at a negative 6.2 million square feet, the prime office space of Class A assets was in high demand, posting a positive absorption of 372,589 square feet during the fourth quarter.
One of the market’s significant office deals recorded last year was New York University’s agreement to master lease Vornado Realty’s entire 1.1 million-square-foot building at 770 Broadway. The lease was possible as Meta Platforms announced plans to exit the building early this year.
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