The Plaza District in Midtown Manhattan has, over the years, become synonymous with prestige, luxury and top-notch entertainment. The area bordered by 59th Street, 48th Street, Third Avenue and Seventh Avenue is home to some of the most popular business and tourist destinations in the world, and also boasts some of the highest prices. Everything is expensive in the Plaza District, from luxury apartments on Billionaires’ Row to shopping at Barneys and Bergdorf Goodman, to dining at five-star restaurants, and finally, to leasing office space in the area.
Featuring roughly 87 million square feet of mostly Class A office space, the Plaza District is a magnet for high-profile tenants in the financial and legal sectors, but also for tech companies like IBM, Apple, Accenture or Microsoft. The skyscrapers grazing this portion of the Midtown skyline offer unmatched views of Central Park and are strategically situated in close proximity to popular tourist destinations like Times Square, the Metropolitan Museum of Art, MoMa, Carnegie Hall, Radio City Music Hall, as well as to a plethora of luxury hotels like the Ritz-Carlton or the Plaza. The views from the Top of the Rock observation deck at 30 Rockefeller Plaza offer tourists from all over the world a glimpse of what Manhattan has to offer.
The Plaza District is home to the largest concentration of Class A Manhattan office space, most of it occupied by big-ticket tenants working in the financial, legal or public sectors. Recognizable staples like the General Motors Building, Rockefeller Center, the Time-Life Building, the Solow Building or the Trump Tower are located within the district, commanding sky-high prices and grabbing the attention of high-profile tenants. The Park Avenue stretch between 45th and 57th streets is actually dubbed ‘Hedge Fund Alley’ due to the high concentration of hedge funds operating office space in the area.
Among the plethora of major companies with an office presence in the Plaza District are: Citibank at 800 Third Avenue, Charles Schwab and Colgate-Palmolive at 300 Park Avenue, Wells Fargo Financial Advisors at 280 Park Avenue, Bloomberg at 731 Lexington Avenue, Blackstone at 345 Park Avenue, IBM at 590 Madison Avenue, HSBC at 666 Fifth Avenue, and BNP Paribas at 787 Seventh Avenue.
The Plaza District led leasing activity in Manhattan for the fifth consecutive quarter in Q1 2019, with 1.6 million square feet of office space leased, according to Colliers. Notable deals to close so far in 2019 include Sumitomo’s renewal and expansion at 277 Park Avenue and hedge fund Citadel’s expansion at 425 Park Avenue.
Office asking rents in the Plaza District are not for the faint of heart. Joining the district’s prestigious tenant roster comes at a huge cost, but many are willing to pay it in order to associate their business with a coveted Park Avenue or Fifth Avenue address. The continuous demand for top-notch, Class A Midtown Manhattan office space has pushed average office asking rents in the Plaza District to a post-recession high of $98 per square foot, per Colliers data.
Companies are willing to pay big bucks to occupy office space in the district, because the area offers unparalleled amenities and proximity to some of the most popular destinations in New York City. Sweeping views of Central Park, the various transportation options, the high density of luxury shopping, five-star dining and stellar entertainment options make the Plaza District the perfect live/work/play location.
The Plaza District boasts excellent transportation options, being within walking distance to a variety of iconic landmarks, shopping, dining and entertainment options. The area is served by a variety of bus and subway stations, including the M1, M2, M5, M7, and M57, and the highly-trafficked 5th Avenue Station is located right at the entrance of Central Park on 59th Street.