Season 3 of the No Cap podcast continues with a conversation with Craig Deitelzweig, CEO of Marx Realty, who joins Jack Stone and Alex Gornik to discuss how hospitality-infused design is breathing new life into the office market.
Craig leads Marx Realty with a philosophy that flips traditional office thinking on its head. From scented lobbies and speakeasies to Porsche house cars and Baccarat crystal partnerships, Marx properties feel more like private members’ clubs than office buildings—and that’s no accident.
Jack, Alex, and Craig explore what it takes to turn neglected assets into must-lease destinations, the ROI of thoughtful design, and why Midtown is defying the “office is dead” narrative.
Conversation Highlights
Jack: Why don’t you tell the listeners what Marx Realty does?
Craig Deitelzweig: We’ve been recognized as the first to marry hospitality and office. Our buildings look and feel like boutique hotels—uniformed doormen, signature scents, curated music, speakeasies, podcast studios, cafes. It’s all about making people love coming to work again.
One of Marx’s signature transformations was 10 Grand Central. Formerly 708 3rd Ave, it was once “the worst building on Third Avenue,” draining $20M annually and struggling to lease space for $33–$40 PSF.
Craig and his team flipped the entrance to 44th Street to align with Grand Central, rebranded the asset, redesigned the lobby with hospitality in mind, and launched amenity floors with Ivy Terrace, large boardrooms, and bar spaces.
Craig Deitelzweig: After the repositioning, our rents jumped by $30 to $50 PSF. Today, we’re 93% leased, soon to be 95%. And we’ve raised rents three times just this year.
Marx even offers tenants access to a Porsche Taycan house car via their app—completely free.
Craig: It’s not just for execs. Everything is democratic. Gelato, lounges, podcast studios… they’re for everyone in the building.
Another standout project is 545 Madison, which became the first luxury co-branded office building in the US via a partnership with Baccarat. Chandeliers worth millions adorn the lobby, barware matches the brand, and tenants even receive Baccarat gifts upon move-in.
Alex: You brought literal wealth to the building.
Craig: When tenants walk in and recognize the scent as Baccarat, that’s how you know the brand connection is real. It’s about pride and identity—our spaces feel like clubs.
Despite persistent headlines, Craig is bullish on office—especially in Manhattan.
Craig: Midtown is on fire. Our buildings are nearly fully leased. Tenants bring their entire teams for tours, take selfies, and sign on the spot. In the right pockets, with the right product, office is thriving.
He explains that real transformation happens when you go beyond box-checking amenities.
So many groups just check the box… they build amenity centers that feel like airport lounges. We don’t do that. We make sure people actually use the space.
Craig: Tenants don’t care about paying a little more if they’re getting a space with a car, a bar, and a real experience. The town hall has become the most in-demand amenity—it’s all about togetherness.
Craig contrasts the tenant base and growth trajectories between New York and Washington, DC. While NYC benefits from a diversified mix of finance, tech, and design, DC still leans heavily on government tenants. However, Marx’s hospitality-forward approach has found traction in both markets.
Craig: DC’s been our most active market in five years, with lobbying groups and even some tech tenants expanding. We think there’s room to bring our New York sensibility—without being snobby—into markets that haven’t seen this level of hospitality in office.
Marx Realty is active in 16 states and owns the Cross County Center, America’s first open-air shopping center, which it is expanding. Retail, like office, benefits from experience and placemaking.
Marx isn’t chasing conversions, but they’re benefiting from others doing so.
Craig: Conversions free up tenants who still want to be near Grand Central. We’re long-term thinkers—we’re turning bad office into great office.
The team is actively looking for distressed opportunities and is already underwriting deals where LPs are starting to re-engage.
Craig: Equity is slowly coming back. Not in volume, but smart money is circling. We’re preparing for the moment when everyone wants in.
We’re actually seeing LPs come to us for the first time since COVID, asking us to look at deals together. Equity is slowly coming back.
Jack: After this conversation, I feel better about the future of office than I have in a while.
Alex: I don’t just want to work in your buildings—I might want to live in them.
Craig: A lot of people ask us to help them design their homes. We’ll take that as a win.
People bring their mothers and their friends to tour the space. They stay late for drinks. It’s like a club—and they treat it that way.
Watch the full episode on our YouTube Channel or your favorite podcast app.
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