Historic IBM Building Hits Market at $1.1 Billion While Madison Avenue Retail Flourishes

In a pivotal moment for Manhattan’s trophy office market, the iconic 590 Madison Avenue – long known as the IBM Building – has been put up for sale with an ambitious $1.1 billion price tag. The State Teachers Retirement System of Ohio, which acquired full ownership of the property in 2015 after initially purchasing it with Edward J. Minskoff Equities in 1994, has enlisted Eastdil Secured to market the prestigious asset.

The 41-story, 1-million-square-foot Midtown tower represents the first potential billion-dollar investment sale in New York City in two years. The timing is particularly significant as it coincides with a reinvigorated retail leasing landscape across key Manhattan corridors, according to the latest Real Estate Board of New York (REBNY) report.

This is a watershed moment for Manhattan commercial real estate. The IBM Building sale will be closely watched as a barometer for how investors truly value premium Manhattan assets in the post-pandemic landscape.

While IBM itself has relocated to SL Green’s One Madison Avenue development, the property at 590 Madison continues to attract blue-chip tenants. Luxury conglomerate LVMH recently secured 150,000 square feet across four office floors at an impressive asking rent of $190 per square foot, with potential plans to expand into the building’s retail space.

Other notable tenants include Reverence Capital Partners, E.F. Hutton, and Crestview Partners. Edward J. Minskoff Equities, which continues to manage the property, is transforming IBM’s former client-facing space into premium amenities available to all tenants.

Madison Avenue’s Retail Renaissance

The iconic tower’s sale coincides with a remarkable retail recovery along Madison Avenue, particularly in the luxury corridor between 60th and 76th streets, where storefronts are nearly fully leased with prestigious brands like Giorgio Armani and Van Cleef & Arpels.

“Madison Avenue has maintained its position as one of Manhattan’s most in-demand retail destinations,” notes the REBNY report. The area has benefited from fashion retailers new to the city, including Boggi Milano at 527 Madison, part of a trend that accounted for 20% of major recent leasing deals.

The retail revival extends beyond Madison Avenue, with seven blocks of Bleecker Street in the West Village approaching full occupancy. Rockefeller Center’s retail space is now completely leased, with a new Eataly Cafe expected to open this year.

However, the recovery remains uneven. Despite increased demand, “asking rent in every corridor except Bleecker Street is at least 10% below its pre-pandemic peak,” according to REBNY’s research head Keith DeCoster. Certain areas, including Midtown Third Avenue, Times Square, and Herald Square, continue to face challenges.

IBM’s Strategic Relocation

IBM’s move from its namesake building to One Madison Avenue has helped energize the eastern portion of the Flatiron District. The tech giant’s relocation is part of a broader trend of companies seeking modernized office spaces with state-of-the-art amenities.

IBM’s new home at One Madison represents the evolution of corporate office demands in the post-pandemic era. This shift has created a domino effect of positive retail activity throughout the neighborhood.

All of One Madison’s storefronts are now leased, including to celebrated chef Daniel Boulud’s new La Tete D’or steakhouse, further enhancing the area’s appeal.

The REBNY report identified multiple factors driving Manhattan’s retail resurgence in the latter half of 2024, including a strong jobs market, healthy tourism, and “back-to-office momentum.” These elements have contributed to several large-scale retail deals, including Ikea on Fifth Avenue and Burlington on Sixth Avenue’s Ladies Mile, some spanning up to 80,000 square feet.

As Manhattan’s retail and office landscapes continue their evolution, the pending sale of 590 Madison Avenue stands as a critical test of investor confidence in New York City’s commercial real estate market. Whether the property achieves its ambitious $1.1 billion asking price could set the tone for trophy asset valuations throughout 2025.

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Columbus International Real Estate – Your Gateway to Premium New York City Investments

Christie’s International Real Estate Group has ascended to the summit of “Top of the Rock” by setting up its sleek and stylish new office at One Rockefeller Plaza.

It is truly an honor for our team at Columbus International to coexist in the same building and office space with such an esteemed titan of the real estate and auction industry!

Sonja Cullaro, the firm’s visionary co-founder and EVP, granted The Real Deal an exclusive glimpse into the innovative ways her team is making the most of this newfound space. “One Rockefeller Center nestles right in the heart of vibrant New York City,” Cullaro proudly exclaimed, emphasizing her team’s unique blend of local expertise and global connections through Christie’s International extensive network. “With over 31,000 agents across 50 countries and 940 offices, facilitating more than $100 billion in annual sales, Christie’s International real estate network truly speaks for itself.”

Regionally, Christie’s International Real Estate Group maintains its stronghold with more than 30 offices and 1,000 dedicated associates serving the tri-state area encompassing New York, New Jersey, and Connecticut. A strategic location for the new office, just steps away from the famed Christie’s Auction House on 49th Street, reinforces the seamless connection between the real estate practice and the auction house, igniting a mutual drive for growth and success. Boasting an unrivaled global reach, cutting-edge technology, and an unparalleled marketing approach, Christie’s positions itself as the ultimate destination for high-end and unique properties that require expert handling. “As part of the fastest-growing real estate business in the tri-state area,” Cullaro beamed, “we take great pride in bringing the distinguished Christie’s experience and over 250 years of brand tradition to our esteemed clientele.”

For real estate agents in pursuit of a new home, aligning with Cullaro and her team proves to be a rewarding decision, particularly for those seeking increased exposure and enriched experiences. “We offer ongoing opportunities for growth and development to agents looking to elevate their business,” Cullaro emphasized, affirming that the new flagship office in New York City marks a significant milestone in the company’s expansion. “This is just the beginning; more Christie’s International offices are on the horizon.”