KeyBank Renews and Expands Presence at Elecor’s Midtown Tower
KeyBank Renews and Expands Presence at Elecor’s Midtown Tower
KeyBank has solidified its long-term presence in the Plaza District with a significant lease renewal and expansion. The financial institution has agreed to a 15-year term at 1301 Avenue of the Americas, growing its footprint to a total of 112,924 square feet. This move represents an addition of 15,292 square feet to the bank’s existing office space.
The deal encompasses the entire 35th, 36th, and 37th floors, along with partial occupancy of the 28th and 38th floors. By consolidating this space within a single elevator bank, the bank aims to upgrade its workplace environment and establish a prominent headquarters with signage in the Midtown market. The specific rental terms for the transaction were not disclosed, though market reports provide context for the area.
Regarding the broader market landscape, CBRE Group, Inc. recently reported that the average asking rent for office space in Midtown stood at $86.18 per square foot in the second quarter of 2026. CBRE, currently trading at $151.68, operates as a leading commercial real estate services and investment firm globally.
The leasing team for KeyBank was led by Jones Lang LaSalle Incorporated (JLL). Representatives from JLL, which is currently priced at $388.68, managed the transaction on behalf of the tenant. Negotiations for Elecor Properties, the landlord, were handled in-house.
1301 Avenue of the Americas has seen several high-profile commitments recently. Tenants include Piper Sandler, which leased 140,000 square feet in August 2025. The building is owned by Rithm Capital Corp., which acquired the property through the purchase of Paramount Group’s portfolio. Following the acquisition, Rithm Capital rebranded the former REIT as Elecor Properties in April 2026.
What to watch
- Future leasing activity at 1301 Avenue of the Americas as Elecor Properties integrates the asset into its portfolio.
- Upcoming quarterly earnings from Rithm Capital Corp. for details on asset performance.
- Midtown office vacancy and rental rate trends in subsequent market reports.
Source: original release