The Corcoran Group is betting on New York City’s office market.
The brokerage is moving to the IBM Building at 590 Madison Avenue, where it is subleasing the seventh and eighth floors from Aspen Insurance. The brokerage signed a lease for 11 years and two months for the 48,200-square-foot space, which is roughly the same size as its former office space at 660 Madison Avenue. The new space will be home to the brokerage’s corporate headquarters, as well as the 400 agents who were based out of its East Side office.
Greg Taubin of Savills represented Aspen in the deal, while Paul Wexler of Corcoran represented the brokerage.
The lease flies in the face of the downsizing many companies — including Corcoran competitors — are doing of late in New York. But Pam Liebman, president and CEO of Corcoran, doesn’t see it as a contrarian move; she’s planning for the post-pandemic world.
Corcoran declined to comment on pricing but Liebman said it was a good deal for the brokerage.
“The price is significantly lower than what we were paying at 660 [Madison], not because the building doesn’t warrant it, but because it’s a sublet and the timing,” she said.
The brokerage vacated its former office space at 660 Madison this fall after the building owner, the real estate family office J. Safra Real Estate, began the process of converting the office building into residential and hotel units.
The firm’s new office is being renovated by architecture firm Vocon. The building itself has perks like a gym, a lounge and golf simulator. Liebman said she believes that once restrictions related to coronavirus are lifted, “agents will be very, very happy here.”
“I think New York comes back. It’s not going to happen overnight commercially but it will come back,” said Liebman. “We never considered not keeping the space in New York.”