- BXP’s $2B, 46-story office tower at 343 Madison Avenue has moved past planning and reached the podium level, with completion set for 2029.
- McDermott Will & Schulte and Starr signed on in the 930,000 SF building, rents reportedly near $200 per SF, and BXP said in July it was about 50% pre-leased.
- Manhattan’s availability rate of 13.4% is the lowest since 2020, and trophy availability of 10.1% shows strong demand for the kind of space BXP is building.
BXP’s $2B development at 343 Madison Avenue has reached the podium level of its 46-story tower, according to GlobeSt, citing the New York Post.
The 930,000 SF Midtown project is also signing tenants as it rises.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Law Firm and Insurer Commit
Law firm McDermott Will & Schulte and insurer Starr have reserved space. Neither lease size was disclosed, though the Post reported asking rents near $200 per SF.
GlobeSt says whether additional deals are coming is unclear, but more leasing will be critical to stabilizing the building and producing cash flow for BXP.
Financing and Schedule
BXP secured a $1.2B construction loan this summer, led by Wells Fargo. Completion is targeted for 2029, and BXP said in July that the tower was about half pre-leased.
A Tight Manhattan Market
Avison Young’s Q3 report shows new direct leases in Manhattan up 28% from a year earlier at $99 per SF, with the top rents reaching $375 per SF. Availability dropped to 13.4%, the lowest since 2020, and trophy buildings average only 10.1%.
That tracks with Manhattan office vacancy falling to its lowest level since before 2020.
Why It Matters
Tenants are paying up for scarce new Class A space, as the record $375 PSF lease at 625 Madison showed. A major REIT advancing a tower that is half-leased signals confidence in that demand.
What’s Next
More lease announcements ahead of the 2029 completion will determine how quickly the building stabilizes.
