Sotheby’s International Realty is set to move its headquarters into new digs at 650 Madison Avenue by the end of the year.
The brokerage will take 38,000 square feet across the building’s entire second floor, and is about 30 percent larger than its current headquarters at 38 East 61st Street, according to Crain’s. Its new space, at the foot of Billionaire’s Row, is in addition to two other Manhattan locations, one on the West Side and the other downtown.
The brokerage was represented by Newmark Knight Frank in the deal, while 650 Madison Avenue’s landlord Vornado Realty Trust, was represented by an internal team. The value of the lease is unknown.
The 27-story building has attracted some high profile deals that provide a window into lease prices within the building. Last year, Women’s fashion designer Celine signed for 5,000 square feet for approximately $7.8 million in an annual rent, which works out to around $1,300 a square foot. Ralph Lauren’s global headquarters also occupies the building.
Kathy Korte, Sotheby’s president and CEO, said the brokerage had outgrown its current space as it added more brokers to its ranks. She said the expansion was a sign that “we’re cautiously optimistic that the market is returning.”
The firm’s parent company is Realogy, which also owns Century 21, Coldwell Banker and Corcoran Group. [Crain’s] — David Jeans