SL Green Realty is pushing back against fears in New York City that artificial intelligence will reduce demand for white‑collar workers — and office space — by inking two sizable AI‑driven leases. Manhattan’s largest office landlord also said it’s delivering what is shaping up to be the strongest first quarter in its 28‑year history.
The landlord said Monday its trophy One Madison Avenue redevelopment is now 100% leased after Harvey AI, whose software is used by law firms and other professional services, expanded by an additional 92,663 square feet just months after taking a full floor in the building.
The expansion brings Harvey AI’s total footprint at the tower — counting IBM and Franklin Templeton among its tenants — to 185,326 square feet. The asking rent was $120 per square foot, an SL Green spokesperson told CoStar News.
The One Madison Avenue redevelopment, overlooking Madison Square Park, combined a restored nine-story podium with a new 550,000-square-foot tower above. Amenities include a rooftop event space; La Tête d’Or, an upscale culinary concept by chef Daniel Boulud; and Chelsea Piers Fitness.
“This momentum makes clear that New York City will be a net beneficiary of growth in tech and AI, continuing to attract leading companies that employ top level talent that is not easily replaced with computers.”
Just across the street at 11 Madison Ave., Clay, a fast‑growing AI sales company that has crossed $100 million in annual revenue, signed a new 10‑year, 163,095‑square‑foot lease, SL Green said separately. The 2.3 million‑square‑foot, 30‑story tower, which spans a full block between Park Avenue South and Madison Avenue and 24th and 25th streets, is now also fully leased following Clay’s signing.
The building counts among tenants UBS, Sony, William Morris Endeavor, Suntory and Pinterest. Three-Michelin-star restaurant Eleven Madison Park is one of the amenities.
On track for record office leasing
Clay will occupy the entire 14th and 16th floors, together with part of the 15th floor, SL Green said. The asking rent was $90 per square foot, according to the SL Green spokesperson, adding that Clay is relocating from 111 W. 19th St.
With the two leases, SL Green said it’s on track to end the first quarter with over 900,000 square feet of office leasing, the highest volume ever achieved during the first quarter in its history.
More than two-thirds of its office portfolio is expected to have a weighted average leased occupancy of 98% or higher by the end of 2026, the company said. SL Green already inked nearly half a million square feet of office spaces in the first two months of this year alone.
The company’s first quarter performance is “the ultimate response to the false narrative that AI is shrinking the workforce in New York City,” Marc Holliday, chairman and CEO of SL Green, said in a statement. “This momentum makes clear that New York City will be a net beneficiary of growth in tech and AI, continuing to attract leading companies that employ top level talent that is not easily replaced with computers, and benefitting from increased productivity and innovation.”
AI boosts office market
Concerns about AI’s impact have fueled sell‑offs in commercial real estate, brokerage and other stocks, prompting executives such as Newmark CEO Barry Gosin to calm fears. Gosin said AI is poised to be a business “accelerant” and said Newmark hasn’t seen any impact on leasing activity or heard tenants discussing plans to shrink their office footprints.
New York, ranked among the top tech talent markets, has benefited from AI firms leasing space amid the broader flight-to-quality trend. Technology and AI-driven companies have played a “visible role” in fourth-quarter leasing, helping push 2025 activity to its strongest level since late 2019, according to a recent Lee & Associates study.
Tech leasing activity rose to 15% of Manhattan’s leasing total last year from 9% a year earlier, a separate Avison & Young study found.
The deals come as a slew of AI firms continue to expand in the city, helping fuel a leasing resurgence and push top-dollar deals last year to record highs, brokerage data has shown. For instance, EliseAI, a startup using AI to automate workflows and operations for the healthcare and housing sectors, recently signed a 109,000-square-foot, 10-year lease after closing a $250 million funding round led by venture capital firm Andreessen Horowitz.
For the record
Harvey AI was represented in the transaction by Joseph Messina and Todd Stracci of JLL. The landlord was represented by Paul Glickman, Alex Chudnoff, Ben Bass and Diana Biasotti of JLL.
Clay was represented in the transaction by Aaron Ellison, Derek Feinman and Adam Spector of Newmark. The landlord was represented by Brian Waterman, Brent Ozarowski and Eric Harris of Newmark.