Blackstone Inks Deal to Expand Headquarters on Park Avenue

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Blackstone Group Inc. has signed a lease to expand its headquarters in Manhattan, taking more space on Park Avenue as the firm recommits to staying in New York.

Blackstone will take an additional 80,000 square feet (7,432 square meters) at 345 Park Avenue, bringing its total at the property to about 720,000 square feet, according to a statement Thursday. The building, owned by the Rudin family, has been the New York-based firm’s headquarters for more than 30 years.

“The Rudins have been an outstanding partner for Blackstone since we first moved to 345 Park in 1987,” Jon Gray, Blackstone’s president, said in a statement. “We are also believers in New York City’s recovery and are pleased to be a part of it.”

Blackstone’s initial lease at the building was for two floors, totaling roughly 60,000 square feet. It was signed after founder Stephen Schwarzman ran into landlord Lewis Rudin near the property and expressed frustration about not being able to find space for their firm.

With the recent expansion, Blackstone will now have 12 full floors and 5 partial floors at the building in midtown Manhattan. It also added a year to its lease, which now runs through 2028, according to the statement.

The deal comes roughly a year after the pandemic emptied out Manhattan, sending office workers home and pushing companies to reconsider how much office space they need.

Subleases have flooded the market in months, pulling down rent and raising concerns about the future of the office market in New York as finance firms looked elsewhere, including Florida, for space.

“This expansion marks a significant commitment by one of the financial industry’s leading firms and signals an important part of New York’s recovery,” said Bill Rudin, chief executive officer of Rudin Management Company.

©2021 Bloomberg L.P.

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