Cushman & Wakefield has represented Peter Pennoyer Architects, a world-renowned architecture firm specializing in classical design, in closing a new, 10-year, 18,634 s/f lease for the entire eleventh floor of 136 Madison Avenue, which brings that NoMad property to 100 percent occupancy.
Cushman & Wakefield also successfully orchestrated an exit strategy from the architect’s prior quarters.
Peter Pennoyer Architects had been situated in 9,000 s/f space encompassing the full, eleventh floor at 432 Park Avenue South.
Needing to double in size, however, its existing location was far too small. Moreover, the company’s lease at 432 Park Avenue South would not expire for nine more years.
In response, Peter Pennoyer Architects called upon Cushman & Wakefield to overcome the challenge of identifying new, larger space — while also effectuating the smoothest possible departure from its current location.
But the tenant had many additional needs: The new space would need to comprise a full floor, it would need to be situated in an architecturally significant building, rental rates would have to stay within cost constraints, and the new location would have to be in the greater Midtown South area, the country’s tightest real estate market.
In addition to finding desirable, new space that met every one of the architecture firm’s specifications, Cushman & Wakefield executive director David Rosenbloom – working with senior associate Emily Weber – successfully identified a credit tenant for the previous location, which enabled the architect to terminate the remainder of its previous lease.
The alternative would have been to locate a tenant that would either serve as a subtenant, or would assume the balance of the existing lease.
“Enjoying increasing success, the team at Peter Pennoyer Architects was confronted with a classic ‘good problem:’ they had outgrown their existing quarters, but their lease kept them tethered there,” said Rosenbloom.
“Now, not only are they moving into a superb new location, but we also orchestrated the most gracious exit possible from their prior location.
Andrew Roos and Michael T. Cohen of Colliers represented 136 Madison Avenue on the new lease.
The 150,000 s/f 136 Madison Avenue building’s main lobby features three magnificent, multi-tiered chandeliers hanging from the coffered ceiling. The building has a secondary lobby on 31st Street and a covered loading dock on 32nd Street.
The turn-of-the-century property includes a restored 16-foot high, art deco entrance on Madison Avenue, an elegant concierge desk that is attended 24 hours per day, new passenger elevators, and right-sized floor plates.
While the property is now fully leased, two contiguous floors — entire 3 and 4 — will become available for lease at 136 Madison Avenue beginning in the second quarter, offering for lease approximately 20,000 s/f per floor, and 40,000 square s/f total. Multiple tenants have already inquired about the space.
“New media and traditional service companies are facing a dearth of affordable options in the Chelsea, Flatiron, and Meatpacking districts, instead seeking out high-quality space in alternative neighborhoods,” said Andrew Roos, a Vice Chairman of Colliers International Tri-State, who leads the leasing efforts on behalf of the owners, which include the Cohen, Roos, and Carmel families.
“With its museum-like lobby and close proximity to major attractions such as the Empire State Building, Grand Central, and Penn Station, 136 Madison Avenue has become a destination of choice among tech and other creative firms looking for a prime location, with an uptick of activity on all floors.”