Fox and News Corp. Signs 20-Year Lease Extensions for New York HQ, Hopeful Sign of Midtown Manhattan Office Pulse’s Return

Rupert Murdoch’s News Corp. and Fox Corp. has extended a 20-year lease at their longtime joint headquarters in New York at 1211 Avenue of the Americas.

The updated agreements with Ivanhoé Cambridge, a real estate subsidiary of a Quebec investment firm, include 1.2 million square feet of office space. Together, they represent the largest commercial lease through 2022 and the largest in Manhattan since 2019. In addition to the interior, the renovations will require renovations to the plaza and outdoor areas where Fox Sports and Fox News have hosted broadcasts. There will also be a new tenant lobby on 47th Street. Renovations will begin later this year.

At a time of great uncertainty about the state of office life in the US in general, the expansions offer hope for a range of stakeholders, including New York City officials, commercial landlords and local businesses. Businesses have had to implement waves of changes to their office strategies since Covid began sweeping the country almost three years ago. Commercial utilization in Manhattan remains low as many employees choose to work remotely, and the future of Midtown’s famously dense forest of skyscrapers is the subject of frequent debates between policymakers and average New Yorkers.

Especially in the media world, the row of post-war towers from 42nd to 57th streets on Sixth Avenue (as the Avenue of the Americas was called before 1945) has long had an overly symbolic meaning. NBCUniversal’s home at 30 Rockefeller Plaza is still intact, but the street was also once home to companies like CBS, Time-Life and McGraw-Hill. It is still known today for its many office towers and landmarks such as Radio City Music Hall and Carnegie Hall. Aided by its proximity to transportation hubs, it has fared better than other neighborhoods during the Covid era, despite relatively few prime business locations in Hudson Yards or downtown. Building 1211, dominated by Murdoch, opened in 1973, the same year as the original World Trade Center twin towers, and bears all the geometric design cues of that era.

The office leases now run until 2042 and have further extension options. Fox has nearly 670,000 square feet and the lease is up for renewal in December 2025. News Corp. s lease agreement for 45,000 square meters will be extended at the end of 2027.

Total rents in Midtown will exceed 21 million square feet by 2022, Ivanhoé Cambridge noted, up from the historical 20-year average of 21.2 million square feet. The company said the level of activity demonstrates “the resilience of the Midtown office rental market in a post-pandemic world.”

Jonathan Pearce, EVP, Leasing & Development North America at Ivanhoé Cambridge, told Fox and News Corp. The update “also underscores the importance these leaders place on a dynamic workplace that supports their businesses, attracts and retains key talent, and delivers a leading experience for their viewers, customers, guests and employees. . .”