Council Advisors, a consulting firm focused on executive advisory services, has renewed its 10-year lease at 685 Third Avenue in Midtown East. The company occupies 17,685 square feet across the 31-story office tower owned by BGO. The renewal extends Council Advisors' occupancy at the location through 2035, building on its presence there since 2015.
Savills represented the tenant in the transaction. BGO, the building's owner, did not disclose lease terms or pricing at the time of announcement.
The renewal reflects continued demand for office space in Midtown East despite broader challenges facing the Manhattan commercial market. Office landlords have faced headwinds from hybrid work adoption and rising vacancy rates across the city. Long-term renewals like this one from established tenants signal confidence in specific locations and building quality.
For BGO, the renewal locks in a quality tenant for another decade and removes the risk of losing 17,685 square feet to relocation or downsizing. The building benefits from a stable, creditworthy user in the consulting sector. For Council Advisors, renewing at its existing location avoids disruption and relocation costs while securing space terms in a known environment.
The deal matters for 685 Third Avenue's overall occupancy picture. Midtown East has seen significant vacancy and conversion discussions, particularly in lower-quality stock. Premium towers with strong amenities and well-capitalized owners like BGO retain tenants more effectively than secondary buildings.
Council Advisors' decision to stay rather than explore other neighborhoods or move to hybrid working arrangements underscores that certain consulting firms still value full office footprints and prestigious addresses. For other Midtown East landlords seeking renewals, the transaction provides a benchmark for tenant retention in the advisory services market.
THE BOTTOM LINE: Long-term renewals from established