Newmark Arranges 425,000-SF Office Renewal and Expansion for United Nations HQ at 2 UN Plaza in New York City

Rhea-AI Summary

Newmark Group (NMRK) has successfully brokered a significant office lease renewal and expansion for the United Nations at 2 UN Plaza in Midtown Manhattan. The deal encompasses 425,190 square feet across 26 stories, consolidating the UN's operations previously split between 1 and 2 UN Plaza. The transaction includes a two-story retail component at 1 United Nations Plaza and comes amid a $500 million capital improvement program by the landlord. The property, situated across from UN Headquarters, will undergo major upgrades including infrastructure improvements, lobby renovations, new building systems, and enhanced security features. Newmark's team, led by Jim Saunders and Jason Perla, handled lease negotiations while Roy Abernathy oversaw workplace strategy development to align with the UN's global objectives.

Positive

• Secured a major 425,190 square-foot lease transaction, demonstrating Newmark's ability to handle significant deals
• Transaction coincides with $500 million capital improvement program, potentially increasing property value and tenant satisfaction
• Consolidation of UN operations could lead to increased operational efficiency and space utilization
• Strategic location directly across from UN Headquarters strengthens long-term tenant relationship

Negative

• None.

Insights

Commercial Real Estate Analyst

Major win for Newmark - securing 425,000+ SF UN headquarters deal demonstrates their elite-level capabilities in complex institutional transactions.

This transaction represents a significant achievement for Newmark Group, showcasing their ability to execute complex deals for prestigious global organizations. The 425,190 square foot lease encompasses 26 stories and combines both renewal and expansion elements, demonstrating Newmark's full-service capabilities beyond traditional brokerage.

What makes this deal particularly notable is its multifaceted nature. Newmark didn't simply broker a standard lease - they provided comprehensive services including workplace strategy consulting and real estate advisory to support the UN's consolidation of operations previously split between two buildings. This high-complexity transaction coincides with a $500 million capital improvement program at the property, requiring sophisticated coordination and negotiation skills.

The transaction's structure reveals Newmark's strategic approach to institutional clients. By helping the UN centralize operations while simultaneously implementing a redesigned workplace model, Newmark demonstrates value beyond transaction execution. Their involvement in both the real estate and workplace transformation aspects positions them as a strategic advisor rather than merely a broker.

In Manhattan's competitive commercial real estate market, securing a long-term commitment from an organization of the UN's caliber enhances Newmark's market position and showcases their ability to serve complex institutional needs. While many organizations have been reducing office footprints, this expansion by the UN represents a counter-trend transaction that required specialized expertise to execute successfully.

NEW YORK, June 18, 2025 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers, announces the Company represented the United Nations ("UN") in its long-term office lease renewal, expansion and workplace redesign at 2 United Nations Plaza in Midtown Manhattan. The lease encompasses 425,190 square feet across 26 stories, consolidating and expanding the UN's New York City footprint, including a two-story retail component at 1 United Nations Plaza. Newmark Executive Managing Director Jim Saunders and Head of New York Consulting Jason Perla represented the UN in lease negotiations, while Executive Vice President of Workplace Strategy & Human Experience Roy Abernathy supported the transaction.

"This landmark transaction reaffirms the UN's deep-rooted commitment to New York City as its global diplomatic hub," said Saunders. "We are proud to have advised on this project, which will ensure further improvements to operational efficiency and UN staff support."

Abernathy led a team which oversaw location strategy, workplace strategy and real estate consulting to support the client's evolving needs. The team developed a transformative workplace model tailored to the organization's international mission, introducing a new way of working that aligns with its global objectives.

The UN, a long-standing tenant at the UN Plaza complex, will now occupy nearly all the office space at 2 UN Plaza, which spans levels 2 through 26 at the property. The lease extension brings together operations previously split between 1 and 2 UN Plaza, creating a unified headquarters above the ground-floor retail and beneath the Millennium Hotel.

The lease renewal comes on the heels of an ongoing $500 million capital improvement program across 1 and 2 UN Plaza by landlord United Nations Development Corporation, a state-established public benefit corporation. The project includes significant infrastructure upgrades, lobby renovations, new building systems and elevated security and sustainability features.

Situated directly across from the United Nations Headquarters, the UN Plaza complex has long served as a cornerstone for diplomatic, governmental and international tenants. The property offers unobstructed East River and skyline views, along with immediate access to Midtown Manhattan transit and amenities.

CBRE's Scott Gottlieb represented the landlord in the transaction.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended March 31, 2025, Newmark generated revenues of over $2.8 billion. As of March 31, 2025, Newmark and its business partners together operated from 165 offices with approximately 8,100 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE Newmark Group, Inc.

FAQ

What is the size of the United Nations lease renewal at 2 UN Plaza brokered by Newmark (NMRK)?

The lease renewal encompasses 425,190 square feet across 26 stories at 2 UN Plaza in Midtown Manhattan.

What improvements are planned for the UN Plaza complex where Newmark (NMRK) brokered the lease?

The landlord is implementing a $500 million capital improvement program including infrastructure upgrades, lobby renovations, new building systems, and enhanced security and sustainability features.

Who represented the United Nations in the Newmark (NMRK) lease transaction at 2 UN Plaza?

Newmark's Executive Managing Director Jim Saunders and Head of New York Consulting Jason Perla represented the UN, with Executive VP Roy Abernathy supporting workplace strategy.

What floors will the UN occupy in the 2 UN Plaza building after Newmark's (NMRK) lease deal?

The UN will occupy levels 2 through 26 at 2 UN Plaza, encompassing nearly all the office space in the building.

How will the UN's operations change after Newmark's (NMRK) lease arrangement?

The lease consolidates operations previously split between 1 and 2 UN Plaza, creating a unified headquarters above the ground-floor retail and beneath the Millennium Hotel.