B
XP's ambitious plans for a 46-story skyscraper on Madison Avenue are moving forward, but they're waiting for an anchor tenant before breaking ground at 343 Madison between East 44th and 45th streets. The site, currently a vacant lot owned by the MTA, will be transformed into a striking 950,000 square-foot tower designed by Kohn Pedersen Fox.

    BXP has assembled a top-notch leasing team from CBRE to secure a major tenant for the project. If they fail to find one, they have an escape clause in their ground-lease agreement with the MTA that allows them to terminate the lease by July 31, 2025.

    The developer hopes to capitalize on the demand for office space in the Grand Central district, where SL Green's One Vanderbilt leased up quickly. CBRE's Howard Fiddle describes BXP's tower as a "state-of-the-art, highly sustainable" building that will provide a convenient commute option from across the tristate region.

    BXP is already working on the first phase of the project, which includes building a new above-ground entrance to Grand Central Terminal at Madison and 45th Street. The company believes there's a strong demand for premium office space in the area, citing "tightness" in the Park Avenue district.

    The tower will feature amenities such as a double-height lounge and conference space, indoor and outdoor dining areas on biophilic terraces, and a high-end lobby lounge. Workplace floors will range from 22,000 to 27,500 square feet, with rents expected to top $200 per square foot for the project to be viable.

    The ground lease terms with the MTA are not publicly disclosed, but a 2016 document called for an upfront payment of $25 million and annual rent increases. With the site's floor-to-area ratio now at 30 under recent rezoning, BXP is likely paying significantly more to the MTA than initially anticipated.