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Sony, Credit Suisse Ink Office Leases Totaling 1.7M SF at 11 Madison Ave

Electronics, Financial Giants Both to Downsize Space in Relocation, Renewal Deals
February 25, 2014
Credit Suisse Group AG (NYSE: CS) has agreed to a 20-year renewal lease to keep its American headquarters at 11 Madison Ave. in New York City. In a separate deal, Sony Corp. (NYSE: SNE) signed a 15-year lease at the art deco tower in Manhattan's Flatiron District.

Credit Suisse Group, the Switzerland-based multinational financial services holding company, will take 1.2 million square feet in the new deal, down from 1.8 million square feet it currently occupies there. Credit Suisse Group has held offices in the building since 1997. Renovations will begin this year on floors 1 to 11, which the firm will relocate to when the project is completed in 2017.

Workforce Factors Working Against Landlords in Lease Renewals

Sony, the Tokyo-based electronics maker, will take 525,000 square feet on the top 10 floors of the building in early 2016. The new space will also house Sony Music Entertainment and Sony ATV Music Publishing, and will be built-out by STUDIOS architecture.

The deal will provide a tech-friendly midtown south address for the firm when it relocates its New York headquarters down from its current location at 550 Madison Ave., the 827,686-square-foot tower it sold last year for $1.1 billion and leased back from investors led by The Chetrit Group, according to CoStar data.

Sony to See $770 Million Profit from Sale of US Headquarters

"We’re excited to be moving to this magnificent building in one of New York City’s most dynamic and desirable neighborhoods," said Nicole Seligman, president of Sony Corporation of America. "Our new home will put us right where we belong: among the city’s leading cutting-edge technology and entertainment companies."

The 30-story, 2.24 million-square-foot, 4-Star Metropolitan Life Insurance Plaza building was originally constructed in 1932 on 1.9 acres in the Gramercy Park submarket, between 24th and 25th Streets. It was renovated in 1996 with new HVAC and a new facade, and features numerous amenities including an atrium, on-site management, 24-hour security, 41 passenger elevators, views of Madison Square Park, and is home to the Michelin-Star restaurant Eleven Madison Park.

The asset, developed by SSR Realty Advisors, Inc. with Haines Lundberg Waehler architect, is co-owned by The Sapir Organization and CIM Group LP. The duo recently removed the building from the sales block, deciding at the time to focus instead on renewing leases there.

Bradley Gerla and Zachary Freeman with CBRE exclusively represent available space in the tower, currently up to 213,285 square feet contiguous on four mid-level floors offering 71,000-square-foot floorplates.

"Sony’s move to 11 Madison is a testament to my father’s vision that the building would become one of New York’s most distinguished and desired office headquarters," said Alex Sapir, president of The Sapir Organization. "We are pleased to have Sony join our other long-standing anchor tenant, Credit Suisse, and to have two world-class corporations that have made long-term commitments to the building."

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