Classic NYC real estate move
When the Carlyle Group signed a 94,367 square feet lease at SL Green’s One Vanderbilt last month, the REIT agreed to take over Carlyle’s existing office lease at 520 Madison Avenue. With the lease expiring in 2031, the commitment exceeds $100 million.
By the numbers: The 1.7 million square-foot office development is now 37% pre-leased.
Why it matters: It goes without saying that SL Green can sublease the space or negotiate a termination with the owner of 520 Madison (Tishman Speyer). However, the deal with Carlyle is reflective of the challenge owners face with an influx of new office space (e.g. Hudson Yards and World Trade Center) hitting the market.