Fox Poised to Vacate 330K SF at 1211 Sixth Ave

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Two years after casting an apparent vote of confidence in Manhattan’s office market, Fox and News Corp. appear to be on the verge of partially reversing course in Midtown.

Fox and News Corp. plan to abandon 330,000 square feet at 1211 Sixth Avenue in November, Crain’s reported. The impending exit, referenced in a Wednesday report from credit rating agency KBRA, equates to about a quarter of the space Rupert Murdoch’s media empire has at the building, owned by Ivanhoé Cambridge and RXR.

Fox agreed to an extension in January 2023 to stay at the property until 2042. The media empire’s 1.2 million square feet there include Fox and News Corp.’s corporate headquarters, as well as the New York Post and Wall Street Journal newsrooms and Fox News studio space.

The extension was announced as two separate long-term deals: Fox’s 670,000-square-foot deal would begin in December 2025, while News Corp.’s 485,000-square-foot extension would start two years later. But according to KBRA, the two entities agreed to a combined 924,000-square-foot extension through February 2042, allowing the rest of its 328,000 square feet to expire this coming November.

CBRE’s Mary Ann Tighe, who negotiated the lease extension on behalf of the tenant and said Fox’s plans were known to the owner then, told Crain’s that “nothing has changed.” The parent company of Ivanhoé Cambridge did not respond to a request for comment.

Fox and News Corp. are expected to continue occupying half of the 1.9 million-square-foot property. Disney Streaming Services is expected to have its space sublet as it relocates to 7 Hudson Square.

Occupancy at 1211 Sixth Avenue is expected to drop from 94 percent to 74 percent, according to KBRA, as law firm Ropes & Gray is also planning to leave behind more than 300,000 square feet in approximately two years. The occupancy rate is expected to stabilize at 88 percent.

In January, Scott Rechler’s RXR acquired a 49 percent stake in the building and embarked on a $300 million renovation plan, expected to last until 2028. Canadian pension fund Caisse de dépôt et placement du Québec owns the majority stake.

KBRA downgraded the $1 billion mortgage backing 1211 Sixth Avenue, citing the “impending decline in the property’s occupancy.” The mortgage is set to come due in August.

— Holden Walter-Warner