Paramount Group’s Midtown Manhattan renaissance begins with blockbuster leases that signal renewed confidence in office real estate

10 August 2025

1301 Sixth Ave. welcomed investment bank Piper Sandler. Google Maps

In a moment when office towers often stand half-empty, a spark of optimism has ignited in Midtown Manhattan, courtesy of Paramount Group. During its second-quarter earnings call, the firm confirmed a major coup: investment bank Piper Sandler has signed on for a colossal 140,000 square-foot lease at the revered address of 1301 Sixth Avenue.

That was swiftly followed by another high-profile commitment Adler & Stachenfeld, a well-regarded law firm, inked a 40,000 square-foot deal in the same building, though this second agreement was finalized just after the quarter closed. Both deals came with impressive starting rents above $90 per square foot, a strong indicator of the enduring prestige of the location.

These two pivotal leases are part of a broader leasing momentum that has defined Paramount’s recent performance. For the year to date, the company has leased nearly 690,000 square feet across its key markets New York and San Francisco with just over half of that total concentrated in Manhattan. Such activity prompts remarks from the company’s chairman and CEO, Albert Behler, who noted that the city continues to exhibit “remarkable strength and depth” and represents a clear and sustained "flight to quality."

Paramount’s Manhattan portfolio now sits at an impressive 88.1 percent leased—the highest lease rate the company has seen since early 2022. That figure excludes 60 Wall Street, the enormous former Deutsche Bank tower that remains vacant while undergoing an extensive $250 million renovation. Had that asset been included, the lease percentage would be lower, but Paramount executives emphasized that the performance of their core Midtown properties remains exceptionally strong.

Behind the scenes of these leasing triumphs is strategic capital management. Paramount Finance Chief Linda Berberi confirmed the company will refinance an existing $860 million loan on the 1301 Sixth Avenue property. This move, she said, underscores their strong financial footing and reveals Paramount’s proactive approach to shaping its debt profile.

Elsewhere in Midtown, there are more signs of resilience. Showtime Networks, currently occupying 260,000 square feet at 1633 Broadway, is set to depart in the coming year. While that might seem like a blow, executives remain confidently engaged in re-leasing the space, pointing out that the building enjoys impressive retail performance anchored by well-known tenants like Din Tai Fung reportedly one of the highest-grossing locations and La Pecora Bianca. Asking rents in that building range between $70 and $90 per square foot, with demand showing encouraging signs.

Behind the headlines of marquee leases and strong leasing percentages, there has also been financial progress. Earlier in the year, Paramount arranged a $900 million refinancing for its Manhattan office holdings at 1301 Avenue of the Americas. The new loan carries a fixed interest rate of 6.39 percent and matures in August 2030.

The refinancing replaces nearly $860 million in maturing debt and also provides additional capital to support future leasing initiatives. The nearly full occupancy of 1301 Sixth Avenue now over 97 percent leased provided a firm foundation for this transaction. One notable lease within that campaign includes a 16.5-year, 121,000 square-foot deal with Benesch, Friedlander, Coplan & Aronoff.

Taken together, these moves tell a story larger than a few headline deals. They reveal a company strategically navigating a shifting office market, anchored in two global hubs that remain magnets for premium tenants. Leasing volume has rebounded to its most robust levels since before the pandemic. Average asking rents have climbed above $90 per square foot. And the appetite for high-quality, well-positioned office space is very much alive even in an age of hybrid working and fluctuating demand.

All of this reflects a broader narrative of resilience and rebuilding. Where once offices sat idle, tenants are returning and deals are closing. Where there was uncertainty, Paramount has injected clarity and confidence through smart capital moves and marquee lease signings. What’s unfolding is not just a recovery at its heart, it is a carefully choreographed revival of Midtown’s finest towers, ground not just on empty corridors but renewed ambition.