SL Green Signs 64 KSF Manhattan Tenant

Sigma Computing Inc. has signed a 64,077-square-foot lease at One Madison Avenue, a 1.4 million-square-foot office building in Manhattan. Newmark negotiated on behalf of the tenant, while JLL represented the landlord, SL Green Realty Corp.

The software company will occupy a portion of the tower’s third floor. Following this agreement, the building will be 78.1 percent leased. Earlier this year, IBM signed a 92,663-square-foot lease expansion at the property, bringing its footprint to nearly 363,000 square feet.

SL Green acquired the asset in April 2005 from MetLife Real Estate Investment for $801.7 million, according to Yardi Research Data. In December, the company and its joint venture partners obtained a $1.25 billion mortgage modification and extension for the 26-story building.

A redeveloped Manhattan office building

Initially constructed more than 100 years ago to designs by Napoleon Le Brun & Sons, One Madison Avenue was once one of New York City’s largest office buildings, spanning a full block. The tower underwent a $2.3 billion redevelopment designed by Kohn Pedersen Fox and completed in 2023. The LEED Gold-certified high-rise has floorplates averaging 100,000 square feet, as well as 40,000 square feet of retail space.

Amenities include Le Jardin Sur Madison, an event space and rooftop garden, The Commons, a 7,000-square-foot tenant-only lounge, and a fitness center. The building also has multiple terraces, private nooks and collaborative spaces.

One Madison Avenue rises in Midtown South, adjacent to the Madison Square Park and close to Flatiron Building. Empire State Building is within walking distance.

Newmark Executive Managing Director Brent Ozarowski represented the tenant. JLL Vice Chairs Paul Glickman, Alex Chudnoff and Ben Bass, along with Senior Vice President Diana Biasotti, worked on behalf of the landlord.

Manhattan’s office vacancy rate remains steady

Manhattan’s office vacancy rate at the end of May clocked in at 15.7 percent, well below the 19.4 percent national average and 50 basis points lower over the year, according to a Yardi Matrix office report. However, the metro’s listing rate during the same month was $68.08, marking a 4.5 percent decrease compared to a year ago.

In one of the market’s largest deals closed to date as of May, Deloitte signed an 800,000-square-foot agreement to move its North American headquarters to 70 Hudson Yards. The 1.1 million-square-foot development, currently underway, is set to come online in late 2028.