Universal Music to Move New York Offices Next to Madison Square Garden

Universal Music Group has announced that it has leased new space for its New York offices at Penn 2, the recently completed office tower along Seventh Avenue next to Madison Square Garden.

The building will serve as the headquarters of iconic labels Def Jam Recordings, Island Records, Mercury Records and Republic Records (all part of the Republic Collective), UMG’s merch company Bravado and Verve Label Group (including Verve, Impulse! and Decca Records U.S.). The building will also serve as the East Coast offices for leading global music publisher Universal Music Publishing Group as well as several UMG corporate functions. The company’s New York offices have been located at 1755 Broadway since the early 2000s.

As part of a 22-year lease, UMG, led by chairman/CEO Lucian Grainge (pictured above), will occupy the entire fourth through seventh floors of Penn 2, as well as a ground-floor space along Seventh Avenue for an unspecified “future premium retail experience dedicated to serving music superfans.” In addition, UMG will have the ability to showcase its artists on large scale LED signage within neighborhood.

The new headquarters will be located within an area fittingly named “The Bustle,” a 430-foot-wide expanse of office space stretching from 31st to 33rd Street on Seventh Avenue. It includes 88,000 square feet of double-height, 23-foot-high, column-free office space where UMG will build its New York offices and studio production facilities complemented by exclusive access to more than 3,500 square feet of landscaped outdoor space.

While centrally located, the area is very heavily trafficked due to the presence of both Penn Station — which serves some 600,000 commuters every weekday — beneath the building and the Moynihan Train Hall across the street, as well as the nearly nightly events at the 18,000-capacity Madison Square Garden. Combined with the 15 subway lines running beneath the building, the traffic in the area and the relocation of multiple Metro-North commuter train lines to Penn Station starting in 2027, soundproofing the new studios may prove a challenge.

Boyd Muir, UMG’s Chief Operating Officer said, “UMG’s relocation of its New York offices to the new Penn 2 Tower reflects our vision and ambition.  Located in the heart of Midtown Manhattan and literally adjacent to Madison Square Garden, one of music’s most storied venues where so many of our artists perform to a packed house, Penn 2 will serve as an ideal nexus for our employees, artists and songwriters.  Beyond office space, Penn 2 will house music studios and retail spaces, featuring a range of artist merchandise and exclusive products.  We look forward to working with the team at Vornado as we work towards a 2027 move in date.”

Glen Weiss, Executive Vice President, Office Leasing & Co-Head of Real Estate of Vornado Realty Trust, commented: “We are delighted to welcome Universal Music Group to the Penn District, which has firmly established itself as the epicenter of Manhattan’s new West Side. Universal Music’s commitment to Penn 2 is further evidence of the district’s appeal to the world’s most iconic brands in business, lifestyle and entertainment.”