SL Green Inks Full-Floor Lease in Midtown Manhattan

One Madison Avenue. Image courtesy of SL Green Realty Corp.

Global leader in cybersecurity services Palo Alto Networks has signed a full-floor lease at SL Green Realty Corp.’s One Madison Avenue in New York City. Newmark negotiated on behalf of the tenant, while JLL represented the landlord.

Following the deal, the 1.4 million-square-foot building is 59 percent leased. SL Green has been implementing a $2.3 billion redevelopment project at the property, expected to be completed in October 2023. Roughly a year ago, the landlord inked a 328,000-square-foot, 16-year lease with IBM at One Madison, followed by Franklin Templeton’s 347,474-square-foot, long-term commitment in September.

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One Madison Avenue’s adaptive reuse project designed by Kohn Pedersen Fox, Hines and Vocon combines the original limestone podium with a 500,000-square-foot new tower. Some of the overhaul’s amenities will include a 13,000-square-foot event space, 9,000 square feet of shared amenity space, 15,000 square feet of retail and on-site dining space, a three-floor fitness center and a 10,000-square-foot outdoor garden.

Post-pandemic office leasing in Manhattan

Newmark’s team included Executive Managing Direcor Brent Ozarowski, Associate Director Kevin Sullivan and Senior Research Analyst Kevin Sweeney. JLL’s Vice Chairmen Paul Glickman and Alexander Chudnoff, together with Executive Managing Director Benjamin Bass and Senior Vice President Diana Biasotti arranged the lease signing for SL Green and are also in charge of marketing the remaining space at the property.

While Manhattan is still facing rising vacancy rates, several companies have committed to the market recently. Earlier in March, Rubenstein Public Relations signed a 10-year, 13,200-square-foot lease at 1300 Avenue of the Americas, a 525,825-square-foot tower in the Plaza District. Additionally, tech company StubHub will occupy 44,000 square feet at Silverstein Properties’ 3 World Trade Center in Lower Manhattan, relocating its headquarters from Midtown.