Park Avenue Office Deal Signals NYC Market Rebound

SL Green Realty has agreed to acquire Park Avenue Tower in Midtown Manhattan for $730M, marking one of the biggest office transactions of 2025.
The 620K SF tower is over 95% leased, and the purchase signals rising investor confidence in New York’s recovering office market.rn
The deal follows other major transactions, including RXR’s $1.1B purchase of 590 Madison Avenue, and reflects growing momentum in the high-end segment of the office sector.rn

Key Takeaways

Betting Big On Midtown

SL Green, New York City’s largest office landlord, is doubling down on Midtown Manhattan, reports WSJ. The company is acquiring Park Avenue Tower, a 36-story building near 55th Street. The company disclosed the deal in its Q3 earnings announcement, valuing the transaction at $730M.

The move signals renewed optimism in New York’s premium office market. Leasing activity and investor interest are both recovering from the pandemic-era slump.

A Market On The Mend

SL Green’s purchase stands out in a market where office values have fallen as much as 45% from pre-pandemic levels, according to MSCI. Rising interest rates and remote work trends had dampened investor appetite for office buildings. That trend is now beginning to shift.

Signs of stabilization are beginning to emerge. In the first half of 2025, $3.5B in Manhattan office assets changed hands. That’s up from $2.3B during the same period last year. Lower pricing, combined with an improving leasing environment, is luring back buyers.

Comparative Deals

SL Green’s $730M acquisition is the second-biggest office deal in New York City this year. It trails only RXR’s $1.1B purchase of 590 madison Avenue, completed earlier this summer. That deal was the first to cross the $1B mark since 2022.

Notably, Blackstone bought Park Avenue Tower in 2014 for $750M, near the market peak. SL Green is now acquiring the asset at a slight discount more than a decade later

Strategic Moves

In addition to the Park Avenue Tower acquisition, SL Green also confirmed it sold a 5% stake in its flagship One Vanderbilt tower to Japan’s Mori Building. The deal values One Vanderbilt at $4.7B, consistent with Mori’s earlier 11% stake purchase last year. SL Green still retains a controlling 55% stake in the skyscraper.

Why It Matters

This acquisition highlights a shift in investor sentiment. Office pricing is now more realistic, and leasing demand is returning—especially for trophy buildings. As a result, NYC remains a global outlier. While many urban office markets continue to struggle, Manhattan is once again proving its resilience.

As interest rates ease and foreign capital re-engages, deals like SL Green’s could become more frequent in the quarters ahead.