Microsoft has been looking to sublease space in Times Square, but the tech giant managed to do that farther south in Manhattan.
Fintech startup Ramp agreed to take 66,000 square feet from Microsoft at 28-40 West 23rd Street in the Flatiron District, the Commercial Observer reported. Term and asking rent weren’t revealed; the average asking rent in the neighborhood last quarter was $61.25 per square foot.
Ramp is moving over from Madison Capital’s 71 Fifth Avenue, bringing its employees fewer than 10 blocks north. The startup, which offers corporate credit cards and cost-cutting services for businesses, is more than doubling its space with the move.
Ramp is taking the entirety of the second floor from Microsoft. The tech giant’s lease is set to expire in the second quarter, after which Ramp will convert to a long-term lease at the Williams Equities property.
Colliers’ Mac Roos and Andrew Roos were among those representing the landlord. Cushman & Wakefield’s Michael Mathias and Richard Johns represented Ramp.
Williams recently revamped the 561,000-square-foot property, renovating the lobbies of the two buildings and adding cooling towers to the roof; a roof deck is also in the offing. Tenants include anchor retailer Home Depot and Estee Lauder brand Aramis.
Microsoft is part of big tech’s retreat from the office market after companies in the sector seemingly expanded too quickly. A few months ago, the company put more than 42,000 square feet up to be subleased at SJP Properties’ 11 Times Square. A decade ago, Microsoft leased more than 200,000 square feet at the building.
Microsoft will still have a footprint in the Flatiron District. Two years ago, the company signed a lease for 150,000 square feet at Bromley Companies’ 122 Fifth Avenue, leasing exactly half of the new office development.
— Holden Walter-Warner
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