Manhattan office tenants have been consolidating office space left and right, but a banking giant just inked a deal to expand.
PNC Bank is leasing 83,000 square feet at Sage Realty’s 437 Madison Avenue in Midtown East, the Commercial Observer reported. The asking rent for the 15-year lease was not disclosed. The bank will be taking the entire 11th and 12th floors of the property, as well as part of the 14th floor.
Pittsburgh-based PNC will be relocating from 65,000 square feet located a few blocks south at Barings’ 340 Madison Avenue. It’s unclear when the move will take place, but it will end a nearly two-decade run at the property.
A Newmark team including David Simson and David Falk represented the tenant. A JLL team including Frank Doyle and David Kleiner represented the landlord, as did Michael Lenchner in-house.
In a statement, Lenchner said the deal “underscores the strength of Manhattan’s Class A office market.”
Other tenants at the property include Santander Bank and accounting firm Armanino. Santander sublet 160,000 square feet from WeWork there three years ago; the co-working company initially leased 362,000 square feet at the building in 2019.
Sage and fellow landlord The Travelers Companies landed a $185 million loan from Wells Fargo four years ago to refinance the 40-story office property. The deal retired a $145 million loan from Bank of America.
In April, tenants inked deals for 3.38 million square feet in Manhattan, up 23 percent year-over-year, according to a monthly Colliers report. Leasing volume declined from the previous month, but the availability rate dropped to 15.7 percent, the lowest since February 21.
The average asking rent last month essentially held steady year-over-year at $74.37 per square foot, but that’s still 6.4 percent below the mark from March 2020.
— Holden Walter-Warner
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