Commonfund Takes Entire Floor at Midtown Office Tower

Asset management firm Commonfund has relocated its New York City office from Park Avenue to The Durst Organization’s 825 Third Ave., in Manhattan’s Midtown East. The tenant’s 11,816-square-foot lease encompasses the entire 22nd floor at the 566,895-square-foot property.

Cushman & Wakefield worked on behalf of the tenant, while the ownership was represented in-house.

The asset management firm will join Toyota Tsusho America Inc., Edward Jones, Allied Irish Banks, Tokio Marine Group, Dimension Energy, Beveridge & Diamond, Gotham Asset Management, National Bank of Egypt, Macerich, Hodes Weill & Associates, and Stark Office Suites at the building.

Completed in 1969 between E. 50th and 51st streets, the office building rises 40 stories ranging between 10,750 and 18,800 square feet. The LEED Gold-certified high-rise has recently undergone a $150 million renovation program, which resulted in a new entrance and lobby, 4,000 square feet of public open space and a tenant-exclusive, indoor-outdoor amenity space dubbed Well& by Durst.

Corporate office relocations are increasingly driven by the prioritization of amenities and hybrid work environments. Rather than simply looking for more space, office tenants prefer Class A properties that feature upgraded collaboration areas, making renovated legacy buildings especially competitive across the market.

The Durst Organization was represented in-house by Executive Vice President Tom Bow, Senior Managing Director Ashlea Aaron and Associate Directors Bailey Caliban and Sayo Kamara. Cushman & Wakefield Vice Chairman David Rosenbloom and Executive Director Steven Baker worked on behalf of Commonfund in securing the lease deal.

Manhattan’s streak remains unshakable

As of May, Manhattan’s average office listing rate clocked in at $69.29 per square foot, marking a 1.8 percent increase on a 12-month basis, according to a Yardi Matrix office report, significantly higher than the figures recorded by Miami ($58.41 per square foot) and the Bay Area ($55.68 per square foot), which ranked second and third nationwide. During the same month, the borough’s average office vacancy rate dropped to 13.1 percent, down 260 basis points on a trailing 12-month basis.

Noteworthy leasing deals in Manhattan this month include law firm McDermott Will & Schulte’s 150,000-square-foot lease at BXP’s 343 Madison Ave., a 46-story office tower in Midtown Manhattan. Similarly, Harbor Group International signed a 15-year lease with law firm Alston & Bird for nearly 170,000 square feet at 51 W. 52nd St., also in Midtown Manhattan.