Manhattan’s office market reached a major milestone as hedge fund Castle Hook Partners signed a lease for a 53,000-square-foot penthouse at Related Companies’ planned commercial tower at 625 Madison Avenue. Expected to pay up to $21.2 million annually, the transaction equates to a rate between $350 and $400 per square foot ($3,767 to $4,305 per square meter). This landmark deal shatters the previous market record of $327.50 per square foot set earlier this year at Stefan Soloviev’s 9 West 57th Street, where space is currently being marketed for up to $400 per square foot.

The record-breaking agreement reflects a broader surge captured in Colliers’ third-quarter report, which saw Manhattan Class A average asking rents reach an all-time high of $85.45 per square foot ($919.78 per square meter). Additionally, the period marked the fourth consecutive quarter with over 10 million square feet in leasing volume—a milestone not seen since 2002. Driven by a strong tenant “flight-to-quality,” top-tier trophy office buildings are now actively competing for record rents while overall market availability continues to shrink across the borough.

(source: The Real Deal, Carl Solder)