Blackstone inks deal to expand Midtown Manhattan offices

BLACKSTONE Inc signed a lease to expand its offices in midtown Manhattan, one of the latest companies to bet on New York's recovery as its workforce grows.

The firm is more than doubling its space at 601 Lexington Avenue, where it houses its technology and innovations group, according to sources. Blackstone is taking an additional 200,000 square feet at the building, bringing its total at the property to more than 300,000 sq ft. The deal is a boost for the office market in Manhattan, where empty space has piled up during the pandemic. While many tenants are scaling back their footprints in the hybrid-work era, a handful of major finance and technology firms are on the hunt for new offices as they expand their talent base.

Blackstone also has been mulling a much larger expansion in New York, seeking some 1.5 million sq ft to house its growing workforce in the region, Bloomberg reported in March. More than a year ago, the firm added space at its Midtown headquarters, 345 Park Avenue. Blackstone's lease at 601 Lexington Avenue, will run through 2028, the sources said.

BLOOMBERG