As New York’s office vacancy rate has surged to what CoStar data shows as a record high of nearly 13%, the decision by media giants Fox Corp. and News Corp. to extend their leases in December — for a total footprint of almost 1.2 million square feet — at 1211 Avenue of the Americas between West 47th and 48th streets was a vote of confidence for midtown.
The combined lease extensions, New York’s largest office deal in three-plus years, came as the city is still struggling to recover from the fallout of remote working and economic concerns.
As part of the agreements, Ivanhoé Cambridge and its asset manager, Hines, will begin work later this year on a series of planned upgrades to the building, which will include a renovated Sixth Avenue lobby, overhaul of the building’s outdoor plazas and entrances, and the creation of a new tenant lobby accessible from 47th Street.
The size of the deals and their significance to the Manhattan office market was recognized in the deal's selection as the winner of a 2023 CoStar Impact Award for lease of the year as judged by a panel of local real estate professionals familiar with the market.
About the Transactions: The lease extension for the nearly 670,000-square-foot transaction with Fox will begin in December 2025, while the 486,000-square-foot lease with News Corp. will be effective December 2027. Both media companies have extended their leases through 2042, with further extension options thereafter.
What the Judges Said: The combined transactions “symbolized that the midtown office market is gearing up to come back in full swing. ... It’s important to have such a large global tenant in the midtown area. ... I believe [the deals] built a pathway for more leases alike in the future,” said James Famularo, president of retail leasing at Meridian Capital Group.
"Obviously the Franklin Templeton lease at One Madison was an incredible transaction. And the Complete Playground lease was a great match and an excellent use for the space, but headed into this environment the buildings on upper sixth avenue are challenged. Keeping Fox was an incredible accomplishment," added Newmark Managing Director JD Cohen.
They Made It Happen: Executive Vice Chairs Josh Kuriloff and Ethan Silverstein, Executive Director Mitch Arkin, and Director Heather Thomas of Cushman & Wakefield represented Ivanhoé Cambridge in the transactions.