Madison International Realty Expands in Manhattan
- Sep 22, 2020
Madison International Realty has paved the way for its relocation to larger office digs with a commitment to 25,000 square feet at 300 Park Ave. in Midtown Manhattan. The real estate private equity firm has just inked a 12-year lease agreement with Tishman Speyer, owner of the 773,000-square-foot office high-rise.
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Madison’s new headquarters will be on the third floor of the 26-story 300 Park Ave., which has stood across the street from the Waldorf-Astoria Hotel since opening in 1955. Madison will be staying in the neighborhood when it relocates; its current office is just five blocks away at 410 Park Ave., where the firm has occupied 14,000 square feet for the last decade, according to Savills, which brokered the transaction in 2010.
In the new lease agreement at 300 Park, Tishman Speyer relied on in-house leadership Gregory Conen and Samantha Augarten, while Madison relied on the representation of CBRE’s Howard Fiddle and Evan Fiddle, who had taken on the task of guiding the firm in its search for a larger space long before the COVID-19 pandemic hit the U.S. As Ronald Dickerman, founder & president of Madison International Realty, notes in a prepared statement, the company’s decision to pursue additional elbowroom can be attributed to its need to accommodate company growth for the next 10 years, as well as its desire to create an atmosphere conducive to collaboration within social distancing guidelines. Madison plans to make the move to 300 Park in mid-2021.
To expand or not to expand
Manhattan’s office sector has not escaped the consequences of the pandemic; leasing activity has slowed down to a relative snail’s pace. “Leasing activity in Manhattan fell by 44 percent year-over-year in the first half of 2020 to 8.3 million square feet—just 2.2 million in the second quarter—as most occupiers opted to ‘wait-and-see’ on new lease obligations,” according to a report by CBRE. “But as the market began to thaw in June, a handful of companies committed to major new long-term leases.” Over the summer, Facebook expanded its footprint in New York City with the signing of a lease for the entire 730,000-square-foot office portion of Vornado’s The Farley Building redevelopment project. And TikTok kicked off the thawing of the leasing freeze in late May with a new 232,000-square-foot lease at One Five One with The Durst Organization.
However, it’s not just the big guns that have chosen to upsize in Manhattan in the midst of a pandemic. In the third quarter, Goodwin Procter renewed and expanded its lease at 620 Eighth Ave. to 216,400 square feet and CBRE took on an additional 44,600 square feet at the MetLife Building, increasing its office occupancy at the Park Ave. address to more than 215,000 square feet.