Gary Barnett’s Extell Development is close to securing a major tenant for its Midtown office project at 570 Fifth Avenue. Simpson Thacher & Bartlett, a global law firm, is reportedly finalizing a lease for about 700,000 square feet in the building, according to the Commercial Observer. This would make it the second-largest office lease in New York City this year, behind only New York University’s recent deal at 770 Broadway.
The agreement could mean Simpson Thacher will leave its longtime offices at 425 Lexington Avenue. The firm has already subleased parts of that space in recent years, which suggests that the new lease may replace rather than supplement its current location.
While specific terms of the lease have not been disclosed, average asking rents for Midtown offices were nearly $80 per square foot during the second quarter of this year, based on data from Newmark.
Extell’s vision for 570 Fifth Avenue has changed over time. The site was once slated for a supertall tower but now will feature a 29-story building with both office and retail space. Ikea, through Ingka Investments, plans to anchor the retail portion with an 80,000-square-foot presence and holds a one-third stake in the overall project.
Earlier this year, Extell completed a $175 million land purchase to assemble all necessary parcels for development. The KPF-designed tower is expected to be delivered by late 2028.
If completed as planned, Simpson Thacher’s lease would represent a significant achievement for Barnett amid challenging conditions for large-scale office leasing in Manhattan. Other notable leases signed this year include Amazon’s deal for 330,000 square feet at 10 Bryant Park and Goodwin Procter’s agreement for 250,000 square feet at 200 Fifth Avenue.
Across the United States, law firms have played a prominent role in driving demand for office space so far in 2025. They accounted for nearly six million square feet leased nationally during the first half of the year—the strongest performance by this sector since 2018.
Barnett’s decision marks a shift from earlier plans filed by Extell in 2021 to build a much larger mixed-use tower featuring hotel rooms and apartments at the same address. Instead, Extell focused on developing an office property and secured financing from South Korea-based IGIS Asset Management to proceed with construction.
