A Park Avenue Icon Reborn: Lever House's Pandemic Bet Pays Off

NEW YORK, NY – December 10, 2025 – In a market still grappling with the echoes of pandemic-era uncertainty, a beacon of resilience shines brightly on Park Avenue. Brookfield Properties and Waterman Interests have announced that Lever House, the mid-century modernist masterpiece, has officially reached 100% occupancy. This milestone is not just a leasing victory; it is the culmination of a bold, $100 million revitalization project initiated in the depths of the COVID-19 crisis, delivering a powerful counter-narrative to predictions of the office's demise and offering a masterclass in creating resilient returns.

When the partnership acquired the ground lease for the iconic 1952 building in May 2020, the New York City office market was facing an unprecedented challenge. Vacancy rates were climbing, and the work-from-home revolution seemed poised to permanently alter the urban landscape. Yet, where many saw insurmountable risk, Brookfield and Waterman saw a generational opportunity to reposition a trophy asset for a new era. Their success story demonstrates a core principle for long-term investors: true value is often unlocked through strategic vision and disciplined execution during periods of maximum uncertainty.

A Strategic Bet on Enduring Quality

The decision to invest heavily in Lever House was a calculated one, rooted in a deep understanding of market cycles and shifting tenant demands. Rather than retrenching, the partnership, operating as WatermanClark, launched an ambitious plan to overhaul the landmark, betting that the demand for premier, highly-amenitized office space would not only survive but intensify post-pandemic.

“This redevelopment reflects our firm’s broader strategy of unlocking the potential of existing assets,” said Philip “Tod” Waterman III, CEO of Waterman Interests, in a statement. “Lever House is a prime example of how thoughtful reinvestment, when paired with a deep understanding of tenant needs, can reposition a property to compete at the highest level in today’s market.”

The project involved bringing back Skidmore, Owings & Merrill (SOM), the building's original architects, to helm the redesign. This move signaled a commitment to honoring the building's architectural legacy while courageously adapting it for the future. The renovation, which began in early 2022 and concluded in late 2023, was a comprehensive reimagining of the property from its core infrastructure to its tenant experience.

Blending Heritage with Hospitality

The $100 million overhaul went far beyond a cosmetic facelift. It was a top-to-bottom modernization designed to create a high-performance, hospitality-driven environment. The core infrastructure was upgraded with a new, energy-efficient dedicated outdoor air system (DOAS) and state-of-the-art mechanicals, addressing modern demands for health, wellness, and sustainability.

The most transformative element is the creation of the Lever Club. This sprawling, 30,000-square-foot amenity suite offers tenants an exclusive third-floor oasis complete with lounges, conference facilities, a bar, and a full-service restaurant that opens onto a vast landscaped outdoor terrace. This feature directly addresses the post-pandemic imperative for the office to be a destination—a place for collaboration, mentorship, and culture-building that cannot be replicated remotely.

Inside, the renovation meticulously restored original details like the lobby's terrazzo flooring and glass mosaic tile wall, while making critical functional improvements. Ceiling heights were raised to create more voluminous, light-filled spaces, and elevators were upgraded with a modern destination dispatch system. The result is a seamless fusion of mid-century elegance and 21st-century performance.

“Our revitalization of Lever House has created an elevated benchmark for premier office and hospitality space in Midtown Manhattan,” noted Lauren Young, Managing Partner at Brookfield Real Estate. The full lease-up validates this vision, proving that top-tier firms value an environment that prioritizes both aesthetics and functionality.

The 'Flight to Quality' Personified

The success of Lever House is the most compelling evidence yet of the “flight to quality” phenomenon defining today’s office market. While overall vacancy rates in New York City remain elevated, a clear bifurcation has emerged. Older, unrenovated buildings are struggling, while modern, amenity-rich properties in prime locations are commanding premium rents and attracting elite tenants. Lever House is the trend personified.

The building’s tenant roster reads like a who's who of the financial world, comprising the very firms—global banks, hedge funds, and private equity giants—that are leading the return to the office. Tenants like private equity firm Atairos, which expanded its footprint to 22,000 square feet, and wealth manager Northern Trust, which took 35,000 square feet, were drawn by the building’s prestige and modern offerings. Perhaps the most significant endorsement came from global real estate services firm CBRE, which leased over 64,000 square feet for its new Global Financial Headquarters.

These firms are willing to pay asking rents reported to be north of $200 per square foot because they understand that a premier workplace is a critical tool for attracting and retaining top talent. In a competitive labor market, the office has become a key differentiator, and Lever House provides an undeniable edge.

A Blueprint for Midtown's Renaissance

Beyond its own success, the Lever House story provides a powerful blueprint for the future of Midtown Manhattan's legacy office stock. It proves that iconic but aging buildings on storied avenues can be reborn to compete with, and even surpass, the appeal of new construction in other submarkets. For other landlords on Park Avenue, the message is clear: significant, strategic capital investment in modernization and amenities is not just an expense, but a necessary strategy for survival and growth.

The project demonstrates that the gravitational pull of a prime location, when combined with a world-class physical environment, remains an unbeatable formula. As companies continue to refine their real estate strategies, properties that offer a distinct sense of place, a superior user experience, and a connection to architectural history are poised to deliver the most stable and resilient returns for the foreseeable future. Lever House now stands not as a relic of a bygone era, but as a dynamic and thriving testament to the enduring power of visionary investment.