Photo Credit: Vornado Realty Trust
After weeks of negotiations, Universal Music Group (UMG) has finalized the paperwork for a 336,000 square foot office space in the Penn 2 building in midtown Manhattan.
UMG signed a lease for the massive office space, expanding its footprint from the current 242,505 square-foot office at Jack Resnick & Son’s 1755 Broadway. UMG’s lease for 1755 Broadway does not expire until 2028—so the company has plenty of time to make the big move. Terms of the deal were left undisclosed, but Vornado Realty Trust CEO Steven Roth revealed during a recent earnings call that Penn 2 space is leasing in the range of $100 per square foot.
“I’m predicting that Penn 2 will likely be 80% leased by year-end,” Roth told investors during that earnings call. “We are achieving rents here above our underwriting.” Roth also revealed during that earnings call that the company was ‘weeks away’ from signing the 300,000 square-foot lease—though he did not share it was with UMG at the time.
Vornado recently completed its redevelopment of Penn 2—which sits directly above Pennsylvania Station—including a new facade, lobby, and rooftop lounge. The developer also added a 430-foot glass canopy leading into the office tower dubbed the Bustle. Other tenants in the Penn 2 location include Major League Soccer, Madison Square Garden Entertainment, NY E-Health Collaborative, and Nomura Holdings.
The office market in New York City has been struggling with vacancies since the pandemic has brought on increased remote work options. Tenants looking for office space have been gravitating toward newer buildings with more amenities, which is why Vornado focused on revitalizing the building to attract new companies.
The renovation began in 2018 with a comprehensive overall. As of April 2025, the renovation has been ongoing for six years as part of a broader Penn District revitalization plan aimed at modernizing the area surrounding Penn Station and Madison Square Garden.
Content shared from www.digitalmusicnews.com.