Weill Cornell Medicine Expands to 300 KSF in Manhattan

575 Lexington Ave. totals 745,000 square feet. Image courtesy of George Comfort & Sons

Weill Cornell Medicine has signed the 30-year, 100,000-square-foot expansion at 575 Lexington Ave. in Manhattan, bringing its footprint in the building to 300,000 square feet. The deal marks one of the largest lease agreements completed in New York City this year so far.

Weill Cornell will remain the largest tenant in the building that already houses its administrative offices for institutional staff. Following the expansion, the medical school will occupy eight full floors and a portion of ground-floor space for its own lobby.

READ ALSO: Tips for Success, Office Sector Snapshots: CRE.Converge Highlights

The tenant will renovate the new space to support its patient services, medical research and educational goals. Construction work is expected to begin in the spring of next year, with clinical practices to open in fall 2025.

Newmark negotiated on behalf of the tenant; the ownership, a joint venture between George Comfort & Sons and Cannon Hill Capital Partners, had in-house representation. In addition, the joint venture worked with lenders Aareal Capital, Paramount Group and funds managed by Oaktree Capital Management to pencil the deal.

A Midtown office tower

George Comfort & Sons and Cannon Hill Capital Partners have owned the 745,000-square-foot tower since 2015. Located in Midtown’s Plaza District, the 35-story building came online in 1958 and underwent a complete renovation in 2008 and a cosmetic renovation in 2013. The LEED Gold-certified building features floorplans ranging from 8,600 to 41,410 square feet, along with 43,700 square feet of retail space and 220 parking spaces.

Apart from Weill Cornell, the property’s roster also includes Hertz Herson, Two Harbors Investment, Emerald Creek Capital, Warshaw Burnstein, Creditfy and Duane Reade. WeWork occupies floors 12, 14 and 17, according to CommercialEdge information.

Tenants are within walking distance of dining, retail and entertainment options located throughout Midtown. Grand Central Station is less than a half of a mile away; three subway lines are also nearby, alongside multiple bus stops.

Newmark’s David Falk, Andrew Sachs and Ben Shapiro represented Weill Cornell Medicine in the lease agreement. Peter Duncan and Dana Pike with George Comfort & Sons represented the owners.

Manhattan’s office leasing activity

Manhattan office market’s vacancy rate continues to climb from one month to the next, according to a recent CommercialEdge report. The index clocked in at 17.7 percent in September, up 40 basis points month-over-month and 200 basis points over the year.

The borough’s largest leasing deal in terms of footprint size was a lease expansion, signed by Davis Polk & Wardwell. The transaction brought the law firm’s occupied space at 450 Lexington Ave. to more than 700,000 square feet.

Other notable Manhattan deals include Tower Research Capital’s 121,903-square-foot lease at a Silverstein Properties’ high-rise. The technology company is set to relocate to the LEED Gold-certified office building in the fourth quarter of next year.