By: Andrew Carlson

When a landlord moves its own headquarters to accommodate another tenant, it’s often a clear indicator of strong demand. That’s precisely the case at Marx Realty’s 10 Grand Central, the 450, 000-square-foot Art Deco office tower at East 44 th Street and Third Avenue that has undergone a dramatic revival in recent years. As The New York Post reported on Sunday, the building–formerly known by its address, 708 Third Avenue–has become one of Midtown’s hottest commercial properties since a sweeping repositioning effort in 2018.

The transformation began when Marx Realty Chief Executive Officer Craig Deitelzweig spearheaded a $45 million redevelopment plan. A key part of the project was rebranding the tower with a new identity, discarding the avenue address in favor of “10 Grand Central,” and shifting its main entrance to East 44 th Street. The strategy, according to the information provided in The New York Post report, was designed to shed the property’s dated image and align it more closely with the prestige of nearby Grand Central Terminal.

The investment has paid off. Since the repositioning, 10 Grand Central has been on what The New York Post report described as a “leasing juggernaut,” attracting a steady stream of high-profile tenants. Most recently, approximately 27, 000 square feet of new leases have pushed occupancy to over 95 percent–a level virtually unheard of in Manhattan’s still-recovering office market.

To meet tenant needs, Marx Realty will relocate its own corporate offices from 9, 000 square feet on the seventh floor to a larger, 11, 000-square-foot suite on the 11 th floor. The move clears the way for 1-800-Flowers to expand into Marx’s current headquarters space from a smaller sublease on the 18 th floor.

“I never saw before in my 24-year career so many tenants expanding or wanting to,” Deitelzweig told The New York Post, noting the unusual breadth of demand across the building’s roster.

Deitelzweig attributed the surge in leasing activity to a shift in workplace patterns. Many companies that were cautious about expanding during the pandemic–and in its immediate aftermath–have now embraced a return to the office, often four or five days per week. “People thought hybrid work would last forever,” he said, adding that the reality has been markedly different for firms seeking to reestablish in-person collaboration and culture.

The result is a steady stream of expansions and relocations within the building. For example, alternative asset management firm Hayfin Capital Management will move from its current location in the GM Building to a 7, 000-square-foot space on 10 Grand Central’s 16 th floor. That space became available only when telehealth provider Teladoc expanded its presence to the 17 th floor, another sign of the building’s internal leasing momentum.

Demand has also fueled aggressive rent growth. As The New York Post report noted, Marx Realty has raised asking rents at 10 Grand Central four times in the past year alone, from $82 per square foot to $130 per square foot. Two floors at the top of the tower–previously reserved for mechanical use–are now being converted into premium office space featuring all-glass perimeters. Those floors will command an asking rent of $230 per square foot, placing them firmly in the top tier of Midtown’s market.

The premium pricing reflects not only the building’s high occupancy but also its amenity-rich environment.