A skyscraper in Midtown Manhattan has set a new record for office rents, with low-profile hedge fund Castle Hook Partners leasing its top two floors at an annual rent of up to $21.2 million.

Castle Hook Partners will move into the top floors of the office tower at 625 Madison Avenue, owned by real estate developer Related Companies, in the second half of 2029.

According to people familiar with the matter, the fund is willing to pay $350 to $400 per square foot per year for the 53,000 square feet of space, signaling that the boom in Manhattan's high-end office market is accelerating.

The previous office rent record was set earlier this year, when an international private family office signed a 10-year lease at a Midtown building owned by Soloviev Group at an average of $327.50 per square foot.

Related CEO Jeff Blau said in an interview that the company had originally planned to build luxury high-rise residences on the site, which it acquired from SL Green in early 2024, but ultimately decided to capitalize on the "real premium" that exists for "brand-new, fully amenitized, high-end offices with incredible views."

The 53-story tower overlooks Central Park and was designed by British architect Lord Norman Foster, with the top floor and an "amenity floor" set to feature private dining facilities and wraparound terraces.

Blau said the war for talent in the financial services and technology industries, combined with efforts to bring employees back to the office, has created a golden era for New York's luxury offices.

Castle Hook was founded by David Rogers in 2016 and is currently headquartered in the General Motors Building on Fifth Avenue.

Its early investors include legendary hedge fund manager Stanley Druckenmiller, and it has maintained a low profile on Wall Street.

According to its latest regulatory filings, the firm manages about $11 billion in assets and has 35 employees.

The firm is a so-called global macro hedge fund, trading macroeconomic trends across foreign exchange, commodities, bonds and equities.

Data from research firm PivotalPath shows macro funds gained 6.8% this year through the end of August.

Castle Hook has posted strong returns in recent years, reportedly gaining about 50% last year and more than 60% the year before.

A Castle Hook spokesperson did not respond to a request for comment.

Competition for talent among hedge funds is intensifying, and luxury offices and amenities are becoming a way to attract top portfolio managers beyond high pay.

Hedge funds and other financial firms were among the first to require employees to return to the office after the pandemic.

Prominent hedge fund managers such as Bill Ackman and Dan Loeb have strongly criticized New York Mayor Zohran Mamdani's populist policies and their potential impact on New York's real estate market.

After Mamdani won the Democratic primary, some Wall Street executives privately warned that his rise would prompt financial firms to move out of New York.

Blau said: "People may have their own views on New York politics, but I think people believe in the future of New York City."

Related Executive Vice President Stephen Winter said the Madison Avenue building will be 67% leased by the end of the year, with financial services firms as the main tenants.

Private equity firm General Atlantic will lease five floors as the anchor tenant.

JPMorgan's headquarters, unveiled in 2025, features a state-of-the-art wellness center and 19 dining options, setting the tone for new office amenities across New York.