Marx Realty’s 10 Grand Central Nears Full Occupancy as Midtown Office Market Shows Signs of Recovery
NEW YORK — October 1, 2025 — Tenant demand in Manhattan’s office market is showing renewed strength as Marx Realty & Improvement Co. reports near-full occupancy at its 35-story tower, 10 Grand Central. CEO Craig Deitelzweig said the surge in leasing activity has allowed the firm to raise rents four times over the past year.
Midtown Office Market Activity
The property, formerly known as 708 Third Avenue, underwent a multi-million-dollar renovation that added hotel-style amenities. Deitelzweig described the current environment as “one of the strongest office markets that we’ve seen in a decade.”
According to Moody’s, New York City recently recorded the lowest office vacancy rate among major U.S. cities. Data from Placer.ai indicated that foot traffic has exceeded pre-pandemic levels, while Cushman & Wakefield reported that new leasing in Midtown rose to 5.3 million square feet in the second quarter, the highest since 2019.
Notable Transactions and Investor Moves
RXR’s purchase of 590 Madison Avenue, a one-million-square-foot tower formerly home to IBM, was the first office sale exceeding $1 billion since 2022. Gary Phillips, managing director at Eastdil Secured, said the deal reflected improving confidence in the market.
Blackstone has also made moves in the sector, acquiring a stake in Fisher Brothers’ 1345 Sixth Avenue and bidding on both 590 Madison and Paramount Group, a landlord with 13 million square feet of Class A office space that reached a deal to sell to Rithm Capital. Related Companies is considering developing an office tower at 625 Madison Avenue, where it had previously planned a mixed-use supertall project.
Market Conditions and Outlook
The Federal Reserve’s rate cut in September has contributed to a more favorable environment for transactions, CBRE expects an uptick in deal activity. While institutional investors remain selective, focusing on specific submarkets, signs of recovery are emerging in New York’s office sector.