Office tower with tree-filled public space struggles to retain private tenants

The IBM Building at 590 Madison Ave. has one of the finest amenities in the city: A 8,200 square-foot park-like atrium with a 65-foot high glass ceiling, with dozens of chairs and tables available to everyone.  “A tree-filled conservatory and public living room rolled into one,” is how the space was described in Privately Owned Public Space: The New York City Experience, a book written in 2000 by the Department of City Planning, the Municipal Art Society, and urban planner Jerold Kayden.But it seems peerless public space has only so much allure among the tenants upstairs. IBM has cut its footprint by more than half, to 50,000 square feet, because it has been transferring staff from its namesake building to a new office two miles south at 1 Madison Ave. Morgan Stanley has moved out of 50,000 square feet at 590 Madison, and law firm Crowell & Moring, which had 100,000 square feet, relocated to 2 Manhattan West when its lease expired earlier this year.  As of June, the 42-story, 1 million square-foot Class A tower at the corner of East 57th Street was 77% leased, according to a report last week from bond-rating firm KBRA, which rates its $650 million mortgage “underperform.” The building matches the area’s office vacancy rate of about 23%, according to Cushman & Wakefield, indicating 590 Madison isn’t all that different from nearby office towers that are relatively distant from both Grand Central Terminal and Penn Station. 590 Madison’s owner, the State Teachers... Continue reading at 'Crains New York'

[ Crains New York | 2024-11-27 18:07:17 UTC ]

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