IBM Signs 328,000 SF Anchor Lease at One Madison Ave.
Real Estate In-Depth | March 15, 2022
NEW YORK—SL Green Realty Corp. announced on March 15 it had signed a 16-year, 328,000-square foot lease with International Business Machines Corp. at its One Madison Ave. tower building currently under construction.
The lease covers portions of floors two and seven and the entire eighth through 10th floors and a portion of the ground floor where IBM will have an exclusive lobby entrance creating a building within a building experience. The IBM lease follows the recently announced 20-year, 56,000-square-foot lease with Chelsea Piers Fitness at the 1.4-million-square-foot Midtown South tower building.
SL Green’s One Madison Ave. project is scheduled for completion in November 2023.
“We’re extremely proud to welcome IBM to One Madison Avenue. IBM is an ideal anchor tenant for One Madison, which was designed for exactly this kind of forward-thinking office user,” said Andrew Mathias, President of SL Green. “The incredible momentum we’re seeing at One Madison, and across our portfolio, reflects the long-term strength of prime Manhattan office space and leading companies’ unwavering belief in a collaborative work experience that’s only possible in the office.”
“We are delighted to be making One Madison Avenue the new home for IBM in New York City, where we have such a proud history,” said Joanne Wright, IBM’s vice president of enterprise operations and services. “Our new downtown hub will create a modern and dynamic experience for our employees, our clients, and our ecosystem partners. We see New York as an extraordinary center of talent and innovation, and we are confident our new home at One Madison will help attract the kind of talent we need to keep IBM at the vanguard of innovation.”
One Madison Ave. will combine the existing 900,000 square foot limestone building with more than 500,000 square feet of new, virtually column free construction in a new tower above. The building will include a DOAS HVAC system, which circulates 100% fresh outside air, and new, oversized floor-to-ceiling windows in the podium combined with a continuous curtain wall in the tower that will flood the floors with natural daylight.
Large roof terraces will create indoor/outdoor, work and entertainment spaces. In addition to Chelsea Piers Fitness, amenities include a 13,000-square-foot full-service restaurant, a 10,000-square-foot artisanal food market, a 7,000-square-foot tenant-only club style lounge and a 5,000-square-foot shared tenant roof deck.
IBM was represented by Patrick Murphy, Josh Kuriloff and Winston Schromm of Cushman & Wakefield, Inc. Paul Glickman, Alex Chudnoff, Diana Biasotti and Ben Bass of Jones Lang LaSalle represented the landlord.
SL Green Realty Corp., as of Dec. 31, 2021, SL Green held interests in 73 buildings totaling 34.9 million square feet. This included ownership interests in 26.9 million square feet of Manhattan buildings and 7.1 million square feet securing debt and preferred equity investments.