IMG renews at 304 Park, keeping 69% of its peak space

IMG Worldwide renewed 90,202 square feet at SL Green Realty's 304 Park Avenue South this week, a five-year commitment inside a 12-story, 210,000-square-foot building between East 22nd and East 23rd Streets. The talent agency arrived in 2008, expanded in 2016 to seven floors and 130,655 square feet, and has now renewed for 69 percent of that peak. IMG did not leave; it stayed smaller, and the roughly 40,000 square feet it once paid for is now in question.

What shrank the footprint is upstream. IMG's business lines contracted dramatically in early 2025 after parent Endeavor sold its sports media division and events portfolio, and the fashion and modeling operations, IMG Models among them, now sit under WME Group, which still lists offices at 304 Park. Whether those businesses take the balance is left open, and the answer matters more to the landlord than the renewal does. If the space comes back, SL Green is re-leasing close to a fifth of the building in Midtown South, above a retail base that runs Bath & Body Works, Starbucks and Naya.

Terms were not disclosed, so the deal has to be priced against the submarket, where Class B asking rents averaged $70.47 a square foot in August by Cushman & Wakefield's count; applied to 90,202 square feet, that is roughly $6.4 million a year before concessions, and only if the space signs near the average. The building has no class designation in the figures, and the spread between asking and taking is where a renewal's economics live. A five-broker tenant-side team reads as a hint about where the leverage sits: Newmark's Brian Goldman, Matthew Leon and Jason Perla worked the deal alongside Savills' John Mambrino and David Providenti, and no landlord broker was named.

Office is clearing, but the clearing price is set by leasing outcomes rather than cap rates, and this renewal is one of those outcomes. The record first-half leasing by law firms landed in trophy buildings, as our August review of the legal sector's 12.2 million square feet showed; the other side of that split is the mid-block stock, where tenants renew smaller and landlords carry the difference. Midtown South's $70.47 is a submarket average, not a building number, and it is the only pricing handle this deal comes with.

Tenants in that stock are repricing their space by taking less of it, and a 130,655-square-foot footprint renewing at 90,202 is what that looks like at SL Green's building; if the balance returns, the market will show quickly what roughly 40,000 square feet signs for against a $70.47 asking average. That mark will land on the rent roll well before it lands on anyone's cap rate.