- Blackstone expanded its lease at 345 Park Avenue in Midtown Manhattan, which saw 70% more leased office space YoY.
- Blackstone’s workforce grew by 50% from 2020–2023, driving the need for more office space.
- The extended lease, now running through 2034, covers 28 floors of the 1.9MSF tower.
According to The Real Deal, Blackstone will expand its office space by around 30% at Rudin Management’s 345 Park Avenue location.
Digging Deeper
Blackstone’s new lease agreement greatly expands its HQ footprint. The global asset manager will increase its footprint from 750KSF to nearly 1MSF, and extend its lease through 2034.
The company, which has been headquartered in its current Midtown location since 1988, will now occupy 28 floors, or more than half of the building’s 1.9MSF.
Facilitated by JLL’s Peter Riguardi, the lease extends Blackstone’s presence in the building by an additional six years from its previous expiration date.
Market Implications
Blackstone’s lease expansion is a positive indicator for Manhattan’s office market, which has faced plenty of post-pandemic challenges.
According to a Colliers report, in May 2024, nearly 2MSF of office space was leased in Midtown, with about 3MSF leased across Manhattan’s three central business districts. This represents a 70% YoY increase.
Future Prospects
Blackstone’s need for more office space stems from rapid growth. The firm’s workforce expanded by 50% between the end of 2020 and 2023, adding up to over 4.7K employees.
While Blackstone continues to expand its presence at 345 Park Avenue, there is speculation that the company may eventually seek to anchor its own office building, similar to JPMorgan Chase’s development at 270 Park Avenue.
