It took less than three years for One Madison Avenue to put out the “no vacancy” sign – and its significance goes beyond that one location.
Harvey AI, a leading AI provider for legal and professional services, just signed a lease to double its space to 185,326 square feet at SL Green’s 1.4 million square-foot tower between East 23rd and 24th streets. It brings the building to a milestone 100% occupancy, Realty Check can report.
It was the latest coup in a first quarter that’s on track to tally SL Green’s largest-ever leasing volume in its 28-year history – more than 900,000 square feet including 340,000 square feet of tenant expansions. At this rate, the landlord said, more than two-thirds of its 28 million square-foot Manhattan portfolio will be 98% leased this year.
Harvey AI followed recent large signings at 11 Madison Ave. and 245 Park Ave. and brought SL Green’s office leasing in the year’s first 65 days to 832,135 square feet
Harvey’s expansion contradicts a common notion that AI will encourage companies to cut jobs and thus reduce their space needs. Amazon, for example, cut 16,000 jobs globally in January due to AI-produced “efficiencies.”
But SL Green chairman/CEO Marc Holliday called the expansions by Harvey AI and other tenants “the ultimate response to the false narrative that AI is shrinking the workforce in New York City. This momentum makes clear that the city will be a net beneficiary of growth in tech and AI, continuing to attract leading companies that employ top level talent that is not easily replaced with computers.”
Overlooking Madison Square Park, One Madison consists of a restored and contemporized nine-story podium and a new, 550,000 square-foot structure above it — a combined $2.3 billion, adaptive-reuse development designed by Kohn Pedersen Fox.
Other major office tenants include IBM, Franklin Templeton, Coinbase and Sigma Computing. Major retail tenants include Daniel Boulud’s steakhouse La Tete d’Or and Chelsea Piers Fitness.
SL Green leasing director Steven Durel’s cited features such as state-of-the-art HVAC and Rockwell Group-designed event space and rooftop garden Le Jardin Sur Madison as powerful tenant draws. “Harvey AI’s expansion is the ultimate endorsement of our future-forward product,” Durels said.
Asking rents at One Madison have been reported at $115 per square foot.
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