KeyBank has expanded its Manhattan office footprint by adding 15,292 square feet to its space at 1301 Avenue of the Americas, according to Elecor Properties. The banking institution signed a 15-year deal to renew its current lease and increase its total occupancy to 112,924 square feet across the 35th, 36th, and 37th floors, as well as portions of the 28th and 38th floors.
The transaction was handled by brokers Matthew Astrachan, Justin Haber, Kyle Riker, Adam Hill, and Bob Beckstedt from JLL, who represented KeyBank. Elecor Properties’ senior vice president of leasing, Peter Brindley, Douglas Neye, and Sean Kirk negotiated the deal in-house. The asking rent for the Plaza District office tower was not disclosed.
Despite the lack of specific financial figures for this lease, the broader Midtown market shows high demand. The average asking rent for office space in Midtown in the second quarter of 2026 was $86.18 per square foot, according to a report from CBRE.
John Manginelli, the Hudson Valley and metro New York market president at KeyBank, said the expansion allows the company to support its growth while keeping teams together within one elevator bank. “Expanding our footprint at 1301 Avenue of the Americas enables us to support that vision while positioning us for continued growth and enhanced service to our clients across the region,” Manginelli said in a statement.
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Matthew Astrachan described the deal as highly strategic, noting it addressed several priorities: securing more space for growing businesses, keeping teams together, and establishing a true New York City headquarters with prominent signage. Douglas Neye added that the lease demonstrates the enduring appeal of a well-located workplace.
While large-scale office transactions often rely on headline-grabbing numbers, the practical impact of such deals is often found in the operational details. In a city where real estate space is at a premium, the ability to consolidate teams within a single elevator bank—or even a single floor—can be just as valuable as square footage alone. This focus on physical cohesion helps employees handle the physical environment efficiently, which matters when daily operations require quick movement between departments.
Other tenants in the building between West 52nd and West 53rd streets include investment bank Piper Sandler, which signed a lease for 140,000 square feet in August 2025, back when Elecor was still known as the Vital Group. Michael Nierenberg’s Rithm Capital acquired the 16-building portfolio in April 2026 and rebranded the former real estate investment trust as Elecor.
