Law firm Gallet Dreyer & Berkey signed a 12-year lease for the entire 28th floor at 685 Third Avenue in Midtown East, covering 14,000 square feet. The tower owner, BGO, executed the deal for the 31-story office building positioned at East 44th Street and Third Avenue, steps from Grand Central Terminal.
The lease reflects continued demand for premium office space in Manhattan's core business district, where Class A towers command strong tenant interest despite broader remote work trends. 685 Third Avenue ranks as a marquee Midtown address, and full-floor occupancy by an established law firm signals confidence in the office market recovery.
For the landlord, BGO secures a lengthy lease with a creditworthy tenant, locking in revenue through 2036. Full-floor tenants typically negotiate favorable terms given their scale, but the 12-year commitment reduces turnover risk and vacancy exposure. For Gallet Dreyer & Berkey, the move consolidates operations in a prime location that facilitates client meetings and retains top talent seeking prestigious Midtown addresses.
The deal matters for other Midtown office owners. Law firms remain among the most reliable tenants, with strong balance sheets and low churn rates. A major lease at 685 Third Avenue validates the market for institutional-grade space in this submarket and likely sets pricing benchmarks for competing towers nearby.
This transaction demonstrates that despite post-pandemic shifts toward hybrid work, large professional services firms continue investing in substantial office footprints. The full-floor capture suggests BGO's asking rates aligned with market appetite, and Gallet Dreyer & Berkey's commitment indicates the firm expects sustained in-office presence from its workforce.
THE TAKEAWAY: Major law firm leases in Midtown East anchor the office market recovery and validate landlord