Universal Music Group announced it has leased new space at its New York office in 2 New York, which is recently the recently completed office building on Seventh Street next to Madison Square Garden.

The building will serve as the headquarters of iconic iconic record labels, island record, Mercury Record and Republic Record (part of the Republic Collective), UMG's commodity company Bravado and Verve Label Group (including Verve, Impulse! and Decca Records). The building will also serve as the leading global music publisher Universal Music Publishing Group and several UMG corporate functions East Coast offices. The company's New York office has been located in Broadway since the early 2000s.

As part of the 22-year lease, UMG, led by Chairman/CEO Lucian Grainge (pictured above), will occupy the entire fourth floor of Pennsylvania 2, as well as the ground space along Seventh Avenue to gain 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 signs nearby.

The new headquarters will be located in an area called "The Busy", a 430-foot-wide office space that extends from 31st to 33rd Street on Seventh Avenue. It includes 88,000 square feet of dual-height, 23-foot column-free office space where UMG will build its New York office and studio production facility and get exclusive access to 3,500 square feet of landscaped outdoor space.

Due to the existence of Pennsylvania Station (serving approximately 600,000 commuters every weekday), the region is central, and trafficking is massive in the area. Combining the 15 subway lines under the building, transportation in the area, and multiple subway commuters that relocate to Pennsylvania Station starting in 2027, sound insulation of the new studio can be challenging.

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 vendors 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 have a range of music studios and retail spaces with artist merchandise and exclusive products.

Glen Weiss, Office Real Estate Office Rental and Co-Head of Vornado Realty Trust, said: “We are delighted to welcome Universal Music Group to Pennsylvania, which has firmly established performers in Manhattan’s New West Side. Universal Music’s commitment to Pennsylvania 2 is further a testament to the entertainment and entertainment brand and entertainment of Pennsylvania’s most entertainment brand.