BXP has secured a major early commitment for its high-profile Manhattan office tower under construction, landing global investment and insurance firm Starr as the first tenant at 343 Madison Ave., a trophy development rising near Grand Central Terminal.
.jpg)
Starr signed a 20-year lease totaling 275,000 square feet, spanning floors 16 through 27 of the future 930,000-square-foot tower, giving the company roughly 30% of the building when construction is complete, according to BXP. The space will serve as Starr’s New York headquarters, marking a significant relocation within BXP’s Midtown portfolio.
Starr currently occupies approximately 191,000 square feet at 399 Park Ave., also owned by BXP, where it has been a tenant for more than two decades, according to CoStar data. The company also maintains a 49,264-square-foot office at 1177 Avenue of the Americas, though Starr declined to comment on its long-term plans for that location.
“This move marks our continued growth, not only in the U.S., but globally,” Jeff Greenberg, chairman and co-chief executive officer of Starr, said in a statement.
The lease was finalized in December, though BXP declined to disclose financial terms. Starr confirmed it will relocate from 399 Park Ave. but did not provide additional details regarding the timing or its broader Manhattan footprint.
The deal arrives amid a strengthening Manhattan office market. Leasing volume across the borough climbed 20.1% year over year in 2025 to 42.9 million square feet, the highest total since 2014, according to Savills. Brokers and analysts attribute the rebound to tenants prioritizing new or recently renovated buildings near major transit hubs, particularly around Grand Central.
As a result, asking rents in the Grand Central submarket have reached a record $82.14 per square foot, well above the New York metro average of $60, according to CoStar analysis. Trophy assets have pushed rents even higher. A JLL study found that 313 Manhattan office leases priced above $100 per square foot were signed last year, totaling 9.9 million square feet. SL Green’s One Vanderbilt, also connected directly to Grand Central, recorded the borough’s highest starting rent at $305 per square foot.
Industry analysts have repeatedly pointed to 343 Madison as one of the city’s most compelling development opportunities. Evercore ISI previously estimated implied net rents of $170 per square foot, with gross rents “well in excess” of $200 per square foot, while Piper Sandler described the site as “the best current development site” in New York.
“Starr’s commitment to 343 Madison underscores the strength of this location and the enduring demand for high-performance workplaces in Midtown,” said Hilary Spann, executive vice president of the New York region for BXP, in a statement.
Designed by Kohn Pedersen Fox, the 46-story, fully electric tower carries an estimated $2 billion price tag and is expected to be completed in late 2029. Planned amenities include a double-height, client-exclusive club with outdoor terraces, a lobby café, and extensive bicycle facilities with showers and cabanas. The building will also feature a direct outside air system, aligning with growing tenant demand for sustainability and wellness-focused design.
Starr was represented in the transaction by Cushman & Wakefield, while BXP was represented by CBRE. Legal counsel was provided by Skadden, Arps, Slate, Meagher & Flom for Starr and Fried, Frank, Harris, Shriver & Jacobson for BXP.
The lease is widely viewed as a vote of confidence in ground-up office development in Midtown Manhattan and could help accelerate additional leasing momentum at 343 Madison as construction progresses.
Originally reported by Andria Cheng in Co Star.
.png)
