NEW YORK CITY — Universal Music Group (UMG) has leased 88,000 square feet at Penn 2, a recently completed office tower in the Penn District campus within Midtown Manhattan. Vornado Realty Trust (NYSE: VNO) owns the property.
The building will serve as the headquarters of iconic labels Def Jam Recordings, Island Records, Mercury Records and Republic Records, as well as Bravado, UMG’s merchandise company, and Verve Label Group. The property will also serve as the East Coast offices for Universal Music Publishing Group and several UMG corporate functions.
UMG’s New York offices have been located at 1755 Broadway since the early 2000s, according to Variety. The global company’s corporate headquarters are in Hilversum, Netherlands.
As part of a 22-year lease, UMG will occupy the entire fourth through seventh floors of Penn 2. UMG is also taking a ground-floor space along Seventh Avenue with future plans to debut a retail experience for music fans, as well as a private lobby on 33rd Street that will feature a visitor center and direct elevator access to its floors. UMG will be able to showcase its artists on large-scale LED signage within the Penn District.
The new headquarters will be located within The Bustle, a 430-foot-wide expanse of office space stretching from 31st to 33rd Street on Seventh Avenue. In addition to its New York offices, UMG will build new studio production facilities. The tenant will also have exclusive access to more than 3,500 square feet of landscaped outdoor space.
UMG says the new production facilities will bolster its global network of recording studios, including Abbey Road Studios in London, Capitol Studios in Los Angeles and East Iris Studios in Nashville. UMG expects to take occupancy of its new space in 2027.
“UMG’s relocation of its New York offices to the new Penn 2 tower reflects our vision and ambition,” says Boyd Muir, UMG’s chief operating officer. “Located in the heart of Midtown Manhattan and literally adjacent to Madison Square Garden, one of music’s most storied venues where so many of our artists perform to a packed house, Penn 2 will serve as an ideal nexus for our employees, artists and songwriters.”
Glen Weiss, executive vice president of office leasing and co-head of real estate for Vornado Realty Trust, says that UMG’s commitment to Penn 2 is further evidence of the district’s appeal to the world’s most iconic brands in business, lifestyle and entertainment.
As part of its recently completed $750 million redevelopment of Penn 2, Vornado installed a modern glass curtain wall, a triple-height lobby, 16 double-height outdoor tenant loggias and The Bustle. Penn 2 will feature 30,000 square feet of curated retail space, including the Dynamo Room, a 7,100-square-foot, full-service restaurant and bar from Sunday Hospitality.
Penn 2 also offers 72,000 square feet of outdoor green spaces; The Perch, a rooftop glass pavilion and event space that opens onto a 17,000-square-foot private green space available to all tenants; and a 280-seat town hall suspended above Plaza33. Penn 2 serves as the headquarters location for Madison Square Garden and Major League Soccer.
The Penn District campus, which has accounted for $5 billion in private and public investment since 2015, is situated directly above North America’s busiest mass transit hub. The district is serviced by 15 subway lines and is directly connected to Penn Station, which services Amtrak, Long Island Rail Road, New Jersey Transit and PATH trains. Metro-North Railroad will begin operations at the station in 2027.
New York City-based Vornado’s stock price opened at $38.38 per share Wednesday, May 21, up from $24.59 per share one year ago.
— Kristin Harlow