Newmark Expands HQ To 184K SF On Park Avenue
Newmark is renewing its lease and growing its footprint to more than 184K SF at its longtime Park Avenue headquarters.
The commercial real estate brokerage has committed to another 15 years in its lease for its headquarters at 125 Park Ave., bringing the Midtown Manhattan tower to more than 99% occupancy, according to landlord SL Green.
The announcement follows one of the strongest quarters in Newmark’s history, with the brokerage reporting $888M in revenue in the fourth quarter, up 19% year-over-year, and $65.7M in net income, a 24% increase.
Newmark is projecting its earnings to grow by 40% by the end of 2026, in part with the help of new recruits. The firm has been on a hiring spree in recent years, issuing new debt in January 2024 to fund more talent acquisitions.
In the fourth quarter, the company reported $785M in expenses, the vast majority of which went toward compensation and employee benefits. Compensation generally increased more than 13% year-over-year, executives said during a February conference call.
“Fundamentally, we have the benefit of building a company and having white space and attracting talent,” Newmark CEO Barry Gosin told investors. “We're in every conversation today. We're in every beauty contest.”
A Newmark spokesperson didn't immediately respond to Bisnow’s request for comment about the headquarters lease.
Park Avenue has become a hub for the largest financial firms in the world. The street has a 12% vacancy rate, the lowest among all major Manhattan office corridors, according to a Cushman & Wakefield report. Manhattan has an overall vacancy rate of approximately 23%.
Newmark was represented by its own Jason Perla, Brian Waterman, David Waterman and Matthew Shreiner.
The building, known originally as the Pershing Square Building, is a New York City landmark that opened in 1923 and sits across from Grand Central Terminal. SL Green is finalizing the design of a new lobby and the restoration of the building’s entrance to its original design.
