Because the opening of JPMorgan Chase’s gleaming glass-and-steel skyscraper drew close to, some Midtown workplace landlords and brokers have been quietly bracing for a shake-up.
The two.5 million-square-foot Foster + Companions-designed tower at 270 Park Avenue is designed to accommodate roughly 10,000 of JPMorgan’s 24,000 New York staff. Throughout the road is one other constructing the financial institution owns, paving the way in which for what some have described as a JPMorgan-centric neighborhood.
When CEO Jamie Dimon lower the ribbon in October on the financial institution’s new multibillion-dollar headquarters, it marked the beginning of a significant migration from the corporate’s different Midtown places of work. The monetary powerhouse has occupied a number of prime Manhattan buildings via long-term leases, leaving some to wonder if they’d vacate these properties as soon as the brand new headquarters was full.
However regardless of the grand opening, the Manhattan workplace market shouldn’t be but feeling any ripple results. Fairly than shrinking, JPMorgan is doubling down on some leases because it undertakes a $1 billion renovation of 383 Madison Avenue, the previous Bear Stearns constructing throughout the road from its new headquarters that it bought in 2008.
The financial institution simply inked a 60,000-square-foot sublease at close by 390 Madison, boosting its presence there to almost 500,000 sq. ft. Elsewhere, it signed a multi-year renewal on its 270,000-square-foot lease at 237 Park Avenue, a win for co-owners RXR Realty and Walton Road Capital. JPMorgan has additionally prolonged its 123,000-square-foot lease at Brookfield’s 5 Manhattan West via 2031, retaining a Hudson Yards foothold.
“We proceed to take care of important house at our areas throughout Midtown as we absolutely renovate 383 Madison over the following a number of years,” a JPMorgan Chase spokesperson mentioned.
Workplace landlords could finally really feel the ache from the JPMorgan reshuffle. Renovations at 383 Madison are anticipated to complete in 2027, and the expiration of the 390 Madison sublease stays unclear. Landlord L&L declined to touch upon the deal, first reported by New York Enterprise Journal.
In the meantime, landlords with expiring leases appear to be benefitting from the new Class A workplace market. At Stahl Group’s 277 Park Avenue, the place JPMorgan occupies almost half of the 1.9 million-square-foot constructing, it renewed 360,000 sq. ft in late 2024. Two different JP Morgan leases come due within the subsequent few years. A 639,000-square-foot lease expires in March 2026 and a 175,000-square-foot lease expires in March 2028.
The owner is in talks on each with “prime echelon tenants at record-setting rents,” a Stahl Group spokesperson mentioned.
“We’ve got signed leases, leases out, and offers pending for all of Chase’s 2026 expirations. We’ve got a number of inquiries and severe curiosity for his or her 2028 expirations,” the spokesperson mentioned.
Close by, a number of buildings stand to be renovated to additional cement the financial institution’s “metropolis inside a metropolis.” The agency is weighing choices for 250 Park Avenue, an workplace constructing bought final 12 months for over $300 million, which might stay as-is, be redeveloped into a brand new workplace tower or transformed right into a lodge for workers. Plans for an additional workplace constructing at 410 Madison, acquired through the pandemic as a mission workplace for the brand new headquarters, are additionally nonetheless undecided, in line with Bloomberg.
The financial institution isn’t holding on to all of its workplace properties. JPMorgan Asset Administration is looking to sell a Plaza District workplace constructing for $270 million — roughly half of what it was asking for proper earlier than the pandemic hit 5 years in the past.
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