The two extensions total almost 1.2 million square feet of space within the class-A tower, which contains about two million square feet of office and retail space. The tower is a coveted property because it also acts as part of a key downtown transit hub.
The terms of the leases were extended through 2042 and include further extension options.
No financial details were announced, but Ivanhoé Cambridge’s Jonathan Pearce trumpeted the announcement as a major accomplishment in a period of uncertainty for office owners and occupiers.
Fox, News Corp among largest global tenants
"We are thrilled to be announcing these important transactions. FOX and News Corp are one of our largest tenant partners globally,” said Pearce, Ivanhoé’s executive vice-president, leasing and development North America, in the announcement Wednesday afternoon.
“This commitment made by Fox and News Corp is a clear vote of confidence in 1211 and Midtown Manhattan.
“It also underscores the importance that these leading companies place on having a dynamic workplace that supports its business activities, as well as the attraction and retention of key talent, and to offer a leading experience to its viewers, customers, guests, and employees.
“We look forward to working with FOX and News Corp to ensure 1211 continues to provide an exceptional home for their organizations as their needs continue to grow and evolve."
In the nearly 670,000-square-foot transaction with Fox Corporation, the lease extension will be effective December 2025. The 486,000-square-foot lease transaction with News Corp will be effective December 2027.
As part of the agreements, Ivanhoé Cambridge and its asset manager, Hines, will embark on a series of upgrades to the building, including a renovated 6th Avenue lobby, upgrades to outdoor plazas and entrances, and the creation of a new tenant lobby accessible from 47th Street.
Work is expected to commence in late 2023.
"We are delighted to be extending the important and long-standing relationship that ownership has with both FOX Corporation and News Corp at 1211 Avenue of the Americas,” said Michael McMahon, managing director, asset management, Hines, in the announcement.
“The decision by these leading global media companies to remain at 1211 confirms the quality of the property and its infrastructure, as well as the importance of its prime Midtown location to best support its business needs."
Leasing in Midtown Manhattan
The combined 1.152-million-square-foot lease was the largest of 2022 and largest in more than three years in Manhattan, Ivanhoé says in the announcement.
Midtown total leasing exceeded 21 million square feet in 2022 — on par with the historical 20-year average of 21.2 million square feet — showing the resilience of the Midtown office leasing market despite the effects of the pandemic and a potential economic slowdown.
1211 Avenue of the Americas has direct access to the Rockefeller Center Concourse amenities and subway. The Grand Central Terminal, Port Authority Bus Terminal and Penn Station are within walking distance and the building features an on-site subway connection.
The building is LEED Gold certified and Energy Star designated and won the BOMA 2010 Middle Atlantic Regional Building of the Year and the BOMA 2008/2009 Operating Building of the Year.
Josh Kuriloff, Ethan Silverstein, Mitch Arkin and Heather Thomas of Cushman & Wakefield represented Ivanhoé Cambridge in the transactions.
Timothy Dempsey, Mary Ann Tighe, Ken Rapp, Christopher Mansfield and Ariel Ball of CBRE represented Fox Corp and News Corp. Hines is Ivanhoé Cambridge's asset manager for 1211 Avenue of The Americas.
About Ivanhoé Cambridge and Hines
Ivanhoé Cambridge develops and invests in real estate properties, projects and companies in cities around the world, alongside strategic partners and major real estate funds.
Through subsidiaries and partnerships, it holds interests in more than 1,200 buildings, primarily in the industrial and logistics, office, residential and retail sectors.
Ivanhoé Cambridge held $69 billion Cdn in real estate assets as of Dec. 31, 2021 and is a real estate subsidiary of Caisse de dépôt et placement du Québec, a global investment group.
Hines is a global real estate investment, development and property manager.
The firm was founded by Gerald D. Hines in 1957 and now operates in 28 countries. It manages a $92.3-billion portfolio of high-performing assets across residential, logistics, retail, office and mixed-use strategies.
Its teams serve 634 properties totalling over 225 million square feet globally.