Sumitomo Relocates, Expands to 98 KSF at 300 Madison Ave. in NYC
- Sep 26, 2013
Sumitomo Corporation of America went on the hunt for newer, more efficient digs near Grand Central Terminal for the relocation of its North American headquarters in New York City, and it has found just that at 300 Madison Avenue. The global trading company recently entered into an agreement to sublease nearly 98,500 square feet from CIBC Delaware Holdings Inc. at the 1.1 million-square-foot tower, owned by Brookfield Office Properties.
Sumitomo relied on commercial real estate services firm Studley to conduct the search for the right space to replace its current 74,000-square-foot home on seven floors at 600 Third Ave. The end result is a bigger headquarters location on the 3rd and 4th floors of the 35-story 300 Madison, which sits just one block from Grand Central. In addition to larger floor plates, 300 Madison, developed in 2003, offers the modern accommodations Sumitomo is seeking; 600 Third was built in 1970.
Studley describes Sumitomo’s lease as “a major boost for Midtown East.” Indeed, it is. With a relatively old office stock, the area does not exactly have a reputation as the go-to spot for state-of-the-art space. A rezoning initiative by the Department of City Planning is drawing attention to the matter.
“The city planning department and the supporters of the rezoning proposal have argued that the office buildings in East Midtown, and particularly the blocks surrounding Grand Central, are outdated, inefficient and ill-suited to the needs of modern office tenants,” the New York City Independent Budget Office notes in a recent fiscal brief.
Sumitomo will relocate to its new office space at 300 Madison, home to the likes of PricewaterhouseCoopers, in November of this year.