Microsoft Moves Into Manhattan Tower

122 Fifth Ave. Image courtesy of The Bromley Cos.

Microsoft has moved into 122 Fifth Ave., an 11-story mixed-use tower in Manhattan’s Union Square, the New York Post reported. The tech company signed a lease for 150,000 square feet in 2021 to occupy floors six through 10. The deal also includes a part of a 13,200-square-foot rooftop terrace and a 5,500-square-foot pavilion.

The building has been under The Bromley Cos.‘ ownership since 1979, marking the company’s first purchase in New York City. The redevelopment of the property was in the works since at least 2018, when Bromley proposed a three-story vertical addition.

However, the proposal changed over time and in 2021 The Landmarks Preservation Commission approved a new plan that would include the renovation of the facade and the construction of a 10-story office building with space for retail. That same year, Bromley received $170 million in financing from PCCP LLC. The project topped out in June 2022 and its completion was recently announced.

READ ALSO: Office Revival Program Coming to Midtown Manhattan

The Class A building originally designed by architect Robert Maynicke for developer Henry Corn came online in 1900. The tower then underwent cosmetic renovation in 1982 and 1987. STUDIOS Architecture designed the current redevelopment, including floorplates ranging from 27,000 to 33,000 square feet, six passenger elevators and is now targeting LEED and Fitwel certifications. Amenities include a rooftop terrace, a bike storage room and a coffee shop.

Located in the heart of the Flatiron District, 122 Fifth Ave. is a few blocks from Union Square Park and Madison Square Park.

Other tenants at 122 Fifth Ave. include clothing and shoe company Allbirds, which signed an 8,000-square-foot lease in early 2022, as well as Parachute Home and jeweler Pandora, which signed in August 2022.

Manhattan leads the U.S. in office rents

Manhattan is maintaining its position as the most expensive office market in the country. In May, the average full-service equivalent listing rate was $85.9, registering a 0.7 percent increase in the last 12 months, according to a CommercialEdge report. The vacancy rate clocked in at 17.0 percent, a 290-basis-point increase year-over-year.

Some recent noteworthy Manhattan leases include Clayton Dubilier & Rice signing for 144,000 square feet with Olayan Group at 550 Madison Ave. Meanwhile, Skanska expanded its tenancy at the Empire State Building, and Empire State Realty Trust landed a new tenant as well, relocating from 7 Penn Plaza.