Law firm McDermott Will & Schulte has signed a lease for roughly 150,000 square feet at Boston Properties’ under-construction 343 Madison Avenue tower, bringing the building to 56% pre-leased and reinforcing the legal sector’s dominance of New York City’s largest office deals in 2026.
Lease Details
The Chicago-based firm will occupy floors 31 through 37 of the planned 46-story tower in Midtown East. At 343 Madison, McDermott Will & Schulte will join global investment and insurance organization Starr, which signed a 275,000-square-foot lease in December and has since exercised an expansion option, bringing its total occupancy to 320,000 square feet across 14 floors. BXP declined to disclose the length and asking price for the lease agreement, but estimated rent for office space on lower floors is expected to be just under $200 per square foot, per CoStar. The building is expected to open to tenants in 2029, according to The Real Deal.
Financial Challenges Linger
The development at the site of the Metropolitan Transportation Authority’s former headquarters has faced significant financial headwinds. In September, BXP lowered its dividend by 30% to help fund the $2 billion office tower, searching for $50 million in quarterly savings. Norges Bank, Norway’s sovereign wealth fund, backed out of a planned 45% partnership in the project last summer, leaving BXP to shoulder more of the financial burden alone.
Law Firms Lead NYC Office Market
Law firms consistently anchor the city’s largest office transactions, and 2026 has been no exception. In May, legal tenants secured three of the top 10 office leases, with Cleary Gottlieb Steen & Hamilton taking the number one spot by inking a 475,000-square-foot lease at 1 Liberty Plaza in the Financial District — a deal triple the size of the second-largest lease that month. McDermott Will & Schulte’s commitment at 343 Madison also continues the firm’s broader expansion in New York. Next year, it will take over an additional floor at SL Green’s 1 Vanderbilt Avenue, where it already maintains offices. The new lease at 343 Madison signals continued confidence in Midtown East’s long-term appeal despite the broader shift toward hybrid work arrangements that has left many Manhattan office buildings with high vacancy rates. Industry analysts say the pre-leasing success at 343 Madison demonstrates that premium new construction continues to attract tenants even in a challenging market.
Despite the challenges, the steady pipeline of pre-leasing activity at 343 Madison suggests that top-tier Manhattan office space remains in demand among large professional services firms seeking modern, amenity-rich workplaces.
