Newmark is renewing its lease and growing its footprint to more than 184K SF at its longtime Park Avenue headquarters.
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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.
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