By Benyamin Davidsons
Kyndryl, a new spinoff to be created from IBM, has signed a new lease for a global headquarters in Midtown Manhattan.
As reported by Crain’s NY, the new firm inked a nine-year deal to take on over 22,500 square feet at the newly minted tower at One Vanderbilt. Developed by SL Green Realty Corp., the 67-floor skyscraper at the corner of 42nd Street and Vanderbilt Avenue, was opened in September 2020 becoming the fourth-tallest building in New York City. The building, which boasts 1.7 million-square-feet of space, is now at a total leased occupancy of 81 percent. SL Green, which is also the city’s largest owner of office space, said the building is on track to be 90 percent leased by the end of 2021.
Kyndryl will be created by the end of the year when IBM’s Managed Infrastructure Services business splits from the rest of the 109 year old company. “We chose a global headquarters in New York City because it exemplifies the vitality and energy of our new company,” said Martin Schroeter, Kyndryl’s chief executive. “Our headquarters building reflects best-in-class sustainability practices, and we are excited to be part of the revitalization of Midtown Manhattan.”
This week, three other leases were also announced at One Vanderbilt including: MSD Partners’ 15-year lease for 35,567-square-feet; Mamoura Holdings’ 10 year lease of 28,448 square feet; and Nearwater Management’s seven-year lease to take on over 17,200 square feet. The new office tower already houses major businesses and firms including anchor tenant TD Bank, The Carlyle Group, Oak Hill Advisors, Greenberg Traurig, and McDermott Will & Emery. In March, SL Green itself also relocated its headquarters to the 27th and 28th floors of the building.
The building has plans for Summit One Vanderbilt, a new observatory at the top of the 1,400-foot building, which is slated to open Oct. 21. Last year, SL Green also developed an idea to experiment with flexible office space, in response to the pandemic. Known as Altus Suites, pre-built office spaces are under construction on the 54th floor of One Vanderbilt. The offices, ranging from 6,300 to 7,500 square feet, should be ready for short term leases starting in December.
Kyndryl was represented in the lease by Patrick Murphy, Winston Schromm and Will Yeatman of Cushman & Wakefield. The landlord was represented in the deal by CBRE’s Robert Alexander, Ryan Alexander, Alex D’Amario and Emily Jones.
