Gary Barnett’s Extell Development is nearing a significant office lease at its Midtown Manhattan project, 570 Fifth Avenue. Simpson Thacher & Bartlett, a global law firm, is expected to take about 700,000 square feet in the building, according to a report from the Commercial Observer. If finalized, this would be the second-largest office lease in New York City for 2025, surpassed only by New York University’s 1.1-million-square-foot agreement at 770 Broadway.
The move may signal that Simpson Thacher plans to relocate from its long-standing base at 425 Lexington Avenue. The firm has already subleased parts of its current space in recent years, raising speculation that 570 Fifth Avenue will become its primary Midtown location.
Financial terms of the new lease have not been disclosed. However, market data from Newmark indicates that average asking rents for Midtown offices were close to $80 per square foot during the second quarter of this year.
Extell’s development plan for the site between West 46th and 47th streets has changed over time. Initially proposed as a supertall skyscraper, it is now set to become a 29-story office and retail tower. Ikea’s investment arm, Ingka Investments, will anchor the retail portion with an 80,000-square-foot commitment and will hold a one-third stake in the overall project.
Earlier this year, Extell completed a $175 million land acquisition needed for the development. The tower was designed by Kohn Pedersen Fox (KPF), and delivery is anticipated by late 2028.
Should Simpson Thacher finalize its lease, it would represent a major success for Barnett as large-scale tenant deals remain rare in today’s market. Other notable leases this year include Amazon’s agreement for 330,000 square feet at 10 Bryant Park and Goodwin Procter’s deal for 250,000 square feet at 200 Fifth Avenue.
Nationally, law firms have been active drivers of office leasing demand in early 2025. According to Savills data cited in the article, law firms signed nearly six million square feet of leases nationwide in the first half of this year—the sector’s highest activity since 2018.
Barnett’s decision marks a shift from Extell’s earlier vision for the site: In 2021, plans were filed for a mixed-use skyscraper featuring more than 1,500 hotel rooms and almost 500 apartments. Instead, Extell chose to focus on offices and secured financing from IGIS Asset Management of South Korea to proceed with construction.
