- C.V. Starr is close to signing a lease for 300K SF at BXP’s 343 Madison Ave. tower, a deal that would make the insurance firm the anchor tenant of the under-construction office project.
- The 46-story, $2B tower broke ground in July without any pre-leased tenants, making the potential deal a vote of confidence in Midtown’s premium office segment.
- Manhattan’s high-end office market is outperforming the national trend, with leasing activity in 2025 outpacing pre-pandemic levels and developers like BXP moving forward with new projects to meet demand.
Optimism For Office Developers
Boston-based developer BXP is close to securing a major win at its Midtown Manhattan project, 343 Madison Ave, reports CoStar. The firm is in final talks with insurance giant C.V. Starr for a lease of roughly 300K SF of space. The lease would fill nearly one-third of the 930K SF tower, marking one of 2025’s biggest NYC office deals.
The 46-story building, located steps from Grand Central Terminal, began construction in July 2025 as a speculative development. It was a bold move in a still-recovering office market. If finalized, the C.V. Starr deal would be a strong validation of the demand for top-tier office space in New York.
A Strategic Shift
C.V. Starr plans to relocate and expand from 399 Park Ave., where it currently occupies just under 200K SF. The move would give the insurance company a larger footprint in a newer, amenity-rich building tailored to today’s tenant preferences.
The tower at 343 Madison is designed with modern office trends in mind — including rooftop lounges, hospitality features, and wellness-focused amenities. BXP expects the project to deliver in 2029.
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Demand For Quality Over Quantity
The deal underscores a growing bifurcation in New York’s office market. Older, less-amenitized buildings face rising vacancies and even potential conversions. Meanwhile, new Class A towers in prime locations continue to attract tenants willing to pay a premium. So far this year, more than 140 Manhattan leases have been signed at rates above $100 PSF, a pace that already surpasses 2024 levels, per CBRE.
Although the city’s office vacancy rate sits at 13.3%, it’s steadily declining, particularly in the trophy segment. Projects like 343 Madison are positioned to benefit from that shift.
What’s Next
BXP is among the few developers to break ground on major office projects in the current environment. Earlier this year, it also launched a new development in Washington, DC If the C.V. Starr deal closes, it would provide crucial early leasing momentum. That could help fill the remainder of 343 Madison ahead of its planned 2029 completion.
With tenant preferences evolving toward best-in-class buildings, and Midtown Manhattan regaining its pre-pandemic appeal, expect more premium office developments to follow suit.
