Bloomberg LP, the media company founded in 1981 by future three-term mayor Michael Bloomberg, has just injected some much-needed adrenaline into Midtown's quietest office hallways.
In a move that surprised commercial market watchers, Bloomberg signed a nearly 1 million square foot lease extension and expansion at 919 SL Green between East 55th and 56th Streets. The 47-story tower is known as the “P.J. Clark Building” because of the two-story tavern structure built in 1884 on the corner, which is considered part of the site.
Bloomberg has extended its existing 749,035 square foot lease for 11 years starting in March 2029. At the same time, the company signed contracts for an additional 175,841 square feet on part of the 34th floor and all floors 35 and 41 through 44.
Negotiations for large office deals with big-name companies usually make the media headlines long before the deal is completed, but this time not a single word was left out.
Bloomberg, which has grown steadily at 919 Third since first moving into the tower in 2015, is clearly not listening to claims that “work from home” means companies are scaling back. Earlier this year, the company extended its lease at its headquarters at 731 Lexington Avenue through 2040.
Although Third Avenue suffers from Midtown's highest vacancy rate of more than 20%, holding back the overall market, 919 Third's 1.5 million square feet are 92.1% leased. Other major office tenants include financial law firms Schulte Ross & Zabel and Mintz, Levin, Cohn, Ferris, Grofsky and Popeo.
“Maybe all the 'Dead Avenue' jokes were premature,” said a commercial broker who was not involved in the deal but asked to remain anonymous.
The deal with Bloomberg is another step forward for SL Green, which signed for about 2.8 million square feet of office space in Manhattan this year. The city's largest commercial landlord expects more than 3.3 million square feet of transactions to be completed by the end of 2024.
SLG is also closing in on 1.1 million square feet of potential new leases in Manhattan, including term sheets and deals being negotiated.
“Overall leasing rates continue to increase as tenants prioritize well-located, upgraded and well-equipped buildings,” said Stephen Durrells, executive vice president and director of leasing at SL Green. said.
CBRE's Howard Fiddle, Chris Mansfield, Zach Weil and Ryan Luck represented Bloomberg on 919 Third. SL Green was represented by CBRE's Robert Alexander, Ryan Alexander, Emily Chabrier, Taylor Callahan, Alex Damario and Nicole Marshall.
