A midtown Manhattan office tower has set a new benchmark for commercial rents in New York City after leasing its top two floors to hedge fund Castle Hook Partners for up to $21.2 million annually. The lease at 625 Madison Avenue will see the firm occupy approximately 53,000 square feet, paying between $350 and $400 per square foot, according to sources familiar with the arrangement. The space is scheduled for occupancy in the latter half of 2029.
This lease price surpasses the city’s previous record, which was established earlier this year when a private international family office agreed to a 10-year lease averaging $327.50 per square foot in another midtown property owned by the Soloviev Group. The aggressive bidding reflects a growing strength in the luxury segment of Manhattan’s office market, driven by competition among financial services and technology companies to attract and retain talent.
Originally, Related Companies, the developer behind 625 Madison Avenue, had intended to construct a high-end residential tower on the site, purchased from SL Green in early 2024. However, the developer opted to shift focus toward upscale office space, citing strong demand for “new, properly amenitised, high-end offices with incredible views,” as stated by Related CEO Jeff Blau. The 53-story skyscraper, designed by British architect Lord Norman Foster, will feature amenities such as private dining and wraparound terraces on both the penthouse and amenity floors.
Castle Hook Partners, founded in 2016 by David Rogers, a former executive at Soros Fund Management, currently operates out of the General Motors Building on Fifth Avenue. The firm, which manages roughly $11 billion with a staff of 35 employees, is categorized as a global macro hedge fund, trading across currencies, commodities, bonds, and equities based on macroeconomic trends. Early investments included support from noted hedge fund manager Stanley Druckenmiller.
Global macro hedge funds have enjoyed gains amid market volatility, with sector-wide returns rising 6.8% through the end of August this year, according to research firm PivotalPath. Castle Hook itself has reported strong performance, generating approximately 50% returns last year and over 60% the year prior. The firm did not respond to requests for comment regarding the new lease.
Related expects 625 Madison Avenue to be 67% leased by year-end, predominantly to financial services tenants. Private equity firm General Atlantic will occupy five floors, serving as the anchor tenant. The terms of Castle Hook’s lease, including its record-setting value, had not been publicly disclosed until now.