Facebook in talks for huge new office in Midtown South

Social media giant negotiating to lease entire 870K sf at 63 Madison Ave

TRD New York /
Oct.October 24, 2018 03:34 PM

Mark Zuckerberg and 63 Madison Avenue (Credit: Anthony Quintano via Flickr and Google Maps)

Facebook is in talks to continue its expansion in Silicon Alley with a huge new office in Midtown South.

The social media giant is negotiating to lease all of the office space at the 870,000 square-foot 63 Madison Avenue in the Nomad District, sources told The Real Deal.

It wasn’t immediately clear if a lease has been signed, but sources familiar with the negotiations described the deal as a fait acompli. If the deal goes through, Facebook will occupy more than 2 million square feet in Manhattan.

A spokesperson for Facebook could not immediately be reached for comment. A partnership of George Comfort & Sons, Loeb Partners Realty and Jamestown owns the 15-story building. Representatives for the owners also could not immediately be reached for comment.

The 1960s-era building, which fronts the full block along Madison Avenue between East 27th and East 28th Streets, sits just a short walk away from Facebook’s offices at 225 Park Avenue South.

Current tenants at 63 Madison, including the insurance company FOJP Service, were interested in renewing their leases. But sources said Facebook came in and bumped the tenants from the space.

Asking rents at the property are in the high $80s/low $90s per square foot. Jamie Katcher at Cushman & Wakefield is representing Facebook. He could not be immediately reached for comment.

Facebook now occupies around 900,000 square feet at Vornado Realty Trust’s 770 Broadway after expanding in the space formerly occupied by J. Crew earlier this year.

The company also occupies shy of 400,000 square feet at 225 Park Avenue South, where it first signed a lease in 2016.

Loeb Partners Realty and George Comfort purchased 63 Madison Avenue in 1995, and in 2016 sold a 49-percent interest to Jamestown.


Related Articles

arrow_forward_ios
Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)

Facebook close to finalizing Hudson Yards office deal: report

Facebook close to finalizing Hudson Yards office deal: report
An illustration of Vornado's Steven Roth and Facebook's Mark Zuckerberg

Revenge of the hoodies: Big Tech may be breaking up with Big Office for good

Revenge of the hoodies: Big Tech may be breaking up with Big Office for good
Mastercard CEO Ajaypal Singh with 150 Fifth Avenue and Facebook CEO Mark Zuckerberg with Moynihan Station in New York (Getty; Google Maps)

Facebook, Mastercard rethink office footprint

Facebook, Mastercard rethink office footprint
Andrew Florance, CEO of CoStar (Photo by Jeffrey MacMillan for the Washington Post)

EXCLUSIVE: CoStar’s Andy Florance on buying Ten-X, the future of office buildings and why brokers don’t need discounts

EXCLUSIVE: CoStar’s Andy Florance on buying Ten-X, the future of office buildings and why brokers don’t need discounts
An institutional investor’s sale of a 7 percent stake in an exchange-traded real estate fund reveals deep concerns about the sector. (Credit: iStock)

Mystery investor dumps big stake in real estate fund

Mystery investor dumps big stake in real estate fund
Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg (Dorsey by Matt Crossick/PA Images via Getty Images; Zuckerberg by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)

Silicon Valley embraces “work from anywhere” ethos

Silicon Valley embraces “work from anywhere” ethos
Thor Equities’ big bet on Fulton Market is paying off

Thor Equities’ big bet on Fulton Market is paying off

Thor Equities’ big bet on Fulton Market is paying off
CEO Andrew Florance (Credit: CoStar via YouTube)

CoStar buying Ten-X for $190M

CoStar buying Ten-X for $190M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...