Law firms continue to drive some of New York City’s biggest commercial deals.
McDermott Will & Schulte, a Chicago law firm, has signed a lease for roughly 150,000 square feet at BXP’s 343 Madison Avenue, the developer announced Tuesday.
The new tenant will occupy the 31st through 37th floors of the planned 46-story office tower, Crain’s New York Business reported.
At 343 Madison, McDermott Will & Schulte will join global investment and insurance organization Starr. Starr, which signed a 275,000-square-foot lease in December, exercised an expansion option, bringing its total occupancy to 320,000 square feet across fourteen floors.
Adding McDermott Will & Schulte to the roster has brought 343 Madison to 56% pre-leased, according to BXP.
BXP declined to disclose the length of and asking price for the lease agreement. But the estimated rent for office space in the building on lower floors is expected to be just under $200 per square foot, according to CoStar.
343 Madison is expected to open doors for tenants in 2029.
The development at the site of the Metropolitan Transportation Authority’s former headquarters has been fraught with financial challenges. In September, BXP lowered its dividend by 30 percent to help pay for the $2 billion office tower, searching for $50 million in quarterly savings.
Norges Bank, Norway’s sovereign wealth fund, backed out of a plan to be a 45 percent partner in the project last summer.
The lease at 343 Madison underlines McDermott Will & Schulte’s recent expansion. Next year, the firm will take over an additional floor in the SL Green’s 1 Vanderbilt Ave.
Law firms consistently lead New York City’s biggest office leases. In May, they secured three of the top 10 spots, with Cleary Gottlieb Steen & Hamilton taking number one spot by inking 475,000 square foot lease at Financial Districts’s 1 Liberty Plaza. Notably, the deal was triple the size of last month’s second largest lease.
— Simon Galkevich
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Law firms continue to dominate May’s top office leases