How Is 343 Madison’s Construction Progressing?
343 Madison Avenue has moved from excavation and foundation work into vertical construction, with the 46-story office tower now at the podium stage. This marks a visible shift from below-grade construction to the structure that will support the floors above. The podium milestone echoes progress at another major Midtown office development.
BXP completed excavation and poured the foundation by mid-2025, and steel deliveries signaled the start of vertical framing that year. Early 2026 reports also described foundation slab formation and continuing below-grade work.
Together, these milestones chart the project’s podium progress and show that construction is advancing rather than remaining preparatory. The construction timeline began in 2025, following the project’s late-2024 announcement.
Work was linked to MTA ground-lease requirements and a planned Madison Concourse connection. The roughly 930,000-square-foot tower is targeted for delivery in late 2029, with BXP identifying the third quarter as a possible completion window. The project reflects a broader Midtown shift, as office-to-residential conversions repurpose vacant buildings to help address New York City’s housing shortage.
A July 2026 construction loan supports ongoing work.
Which Tenants Have Leased Space at 343 Madison?
As construction advances, leasing has emerged as a key measure of demand for 343 Madison Avenue. Starr established the tower’s anchor tenancy with an approximately 275,000-square-foot lease signed in January 2026.
The 20-year agreement covers floors 16 through 27, representing about 30% of the planned 930,000-square-foot building. Starr later expanded its commitment by two floors, bringing its total footprint to roughly 320,000 to 325,000 square feet.
That makes Starr’s anchor lease the largest publicly identified commitment at the property.
McDermott Will & Schulte followed in June 2026 with a roughly 150,000-square-foot lease. The seven-floor lease covers floors 31 through 37, with occupancy expected around October 2029.
Together, the two firms account for roughly 50% to 56% of the tower’s space, depending on Starr’s expansion timing. BXP has reported negotiations with additional tenants, but no others have been publicly named.
How Is BXP Funding 343 Madison?
BXP secured a $1.2 billion construction loan for 343 Madison Avenue, a major step toward funding the 930,000-square-foot tower. The financing is part of a roughly $2 billion capitalization and is expected to cover about 60% of development costs.
| Funding detail | Terms |
|---|---|
| Loan term | Four years, with a one-year extension option |
| Initial pricing | Term SOFR plus 2.50% |
| Potential pricing | Term SOFR plus 2.25% after milestones |
| Equity partner | $80 million investment for a 10% interest |
Wells Fargo led the lending group as administrative agent, with Bank of America Securities, BNY Mellon, and J.P. Morgan Chase participating. The rate reduction ties borrowing costs to construction progress and leasing milestones.
BXP secured a letter of intent for the equity investment. With the loan closed, its expected future equity spending fell to about $341 million, easing near-term capital pressure as the project advances. The project reflects continued investment in high-quality office environments as companies reassess their workplace needs.
What Will 343 Madison’s Design Offer Tenants?
Designed by Kohn Pedersen Fox, 343 Madison will pair its 46-story office tower with a hospitality-forward, client-exclusive experience intended to feel more like a luxury hotel than a conventional workplace. Its hospitality-focused amenities will center on dining, connection, and collaboration in shared spaces.
A double-height lounge and conference area on floors 45 and 46 will anchor the top-floor club, with large meeting rooms for tenant gatherings and client use.
Terraces with Midtown views will extend these spaces outdoors, supporting indoor-outdoor collaboration and offering a change from enclosed work settings.
The broader program includes a lobby café, food and beverage options, and biophilic terraces with greenery.
Specialty floors will offer elevated ceilings and private outdoor terraces, allowing varied workplace layouts.
Bicycle storage, cabanas, and showers will add end-of-trip convenience.
The plan emphasizes flexible settings for meetings, focused work, and informal interaction.
Why Does 343 Madison Matter to Midtown’s Office Market?
The tower’s hospitality-focused design places it in a tightening Midtown market, where 343 Madison’s 930,000 square feet will test demand for new trophy offices. East Midtown’s trophy vacancy was 3.4% at the end of the first quarter of 2026, while new construction remains rare.
Its scale adds meaningful Midtown trophy supply to a submarket where limited inventory has supported high asking rents and landlord pricing power.
Early leasing offers evidence of demand: the building was roughly half pre-leased, including commitments from Starr and McDermott Will & Schulte. Asking rents ranged from just under $200 per square foot on lower floors to about $350 on upper floors, giving the project the potential to set a new pricing benchmark.
Its performance will help indicate whether tenants continue paying premiums for modern space near Grand Central amid broader office-market uncertainty.
Assessment
343 Madison’s rising tower marks a substantial bet on demand for new Midtown office space. Its construction, tenant commitments, financing, and planned design will shape how the project competes as companies reassess their workplace needs.
The building’s significance will depend on whether leasing and investment can support its scale amid a changing office market. For Midtown, 343 Madison is both a major development and a test of confidence in premium office space.
