|alt=AT&T's previous headquarters at 195 Broadway, a classical-style structure with a white granite facade, as seen from the street level AT&T was established in 1885 and had been headquartered at 195 Broadway in Lower Manhattan since 1916. In the subsequent decades, AT&T became the world's largest telephone company, and maintenance costs on its headquarters increased. With its continued growth, AT&T acquired land for a new facility in Basking Ridge, New Jersey, in 1970, although the company denied that it was fleeing to the suburbs.
John D. deButts, who became AT&T's CEO in 1972, also wished to construct a new Midtown headquarters as a monument to the company and to boost his own name recognition. The 195 Broadway headquarters had a capacity of only 2,000 workers, but AT&T had 5,800 headquarters workers by the mid-1970s, most of them in New Jersey.
Development Site acquisition AT&T began looking for a Midtown site in the early 1970s, hiring
James D. Landauer Associates to assist with site selection. It wished to build a site near
Grand Central Terminal but eschewed
Park Avenue as being too prominent. The western blockfront of Madison Avenue between 56th and
57th Streets was being acquired by IBM, which refused to give up its lot to AT&T. On Stahl's block, AT&T acquired seven buildings in late 1974, followed by two adjacent buildings to the west in 1975, the latter of which were acquired in anticipation of AT&T being allowed to construct extra space. The land value appreciated significantly in the following years; by 1982, Stahl's plot alone was worth $70 million. or 1977, a committee of three AT&T officials and three officials from Smith's offices mailed questionnaires to twenty-five architects or design firms which the executives deemed "highly qualified". Thirteen of the recipients responded. Johnson and Burgee did not prepare an elaborate presentation, instead presenting photographs of their past work. Smith subsequently stated that Johnson/Burgee had been open to different design ideas. Johnson said he wanted the new headquarters to be a "landmark" representing the company. AT&T mandated that Johnson/Burgee select an associate architect as per the provisions of the
Equal Employment Opportunity Act of 1972. Harry Simmons Jr., head of a small African American firm, was selected out of seven interviewees from a field of 28 candidates. Simmons's firm was tasked with designing twenty percent of the overall architectural detail. Johnson and Burgee looked to various structures, such as early New York skyscrapers and the entries to the
Tribune Tower design competition, for inspiration. Judith Grinberg created a sketch of the AT&T Building's facade "to interpret [Johnson's] design intent"; the sketch was sold to London's
Victoria and Albert Museum in 2010. In addition, Howard W. Swenson created numerous styrofoam models for the building and helped to refine the design details. The
New York City Department of Buildings received blueprints for the new headquarters in January 1978. AT&T announced its official plans on March 30, 1978, at a conference outside
New York City Hall. A rendering of the headquarters was shown on the front page of the next day's
Times. and the news media characterized it as part of a trend of midtown revitalization. AT&T initially expected to begin construction in late 1978 and complete the building by 1982 at an estimated cost of $60 million. In late 1978, the project received several floors' worth of zoning "bonuses" and exemptions from setback regulations, in exchange for public space, a three-story communications museum, and a covered arcade on Madison Avenue. Johnson decided to use Stony Creek pink granite on the AT&T Building's facade. the same month, AT&T received a $20 million tax abatement on the construction cost. The foundation excavation cost $3.1 million and largely consisted of blasting into the underlying bedrock. Faced with rising construction costs, the architects had to substitute cheaper materials; for example, granite in the elevator cabs was replaced with wood. In December 1980, Paul Goldberger wrote for
The New York Times that "the arch is beginning to take shape". At its peak, the project's three foremen had to balance the requests of about "three dozen powerful prime contractors and 150 subcontractors and suppliers", according to
Inc magazine. The workings were so complex that even the facade cladding required the involvement of members of four construction unions. Shortly after this agreement, AT&T decided to lease out on the 7th through 25th floors, comprising nearly half of the building's space. AT&T wanted to rent out the space for as much as , but few companies were willing to sign a lease. The first occupants moved to their offices on July 29, 1983,
New York magazine reported in February 1984 that the executive offices were not occupied and that full completion was not expected until that May. The building was completed sometime in 1984 but was overlooked by the media, which instead publicized the divestiture. In early 1984, AT&T officials said that rather than constructing a museum in the annex for bonus zoning, they planned to use the annex for a showroom. In exchange, AT&T was granted a $42 million, ten-year tax abatement that August. The museum, which was named Infoquest Center, opened in May 1986. After Koch threatened to rescind the entire tax abatement, AT&T agreed to move only 778 employees. The fine-dining restaurant
The Quilted Giraffe moved into the building in June 1987.
Sony ownership Having substantially decreased in size, AT&T sought to rent 80 percent of the space at 550 Madison Avenue to other companies in January 1991. At the time, AT&T wanted to move most employees to a cheaper space. AT&T had signed a tentative 20-year lease with Sony by that May, although neither company confirmed the rumor at the time. Sony signed a 20-year lease agreement for the entire building that July, including an option to purchase 550 Madison Avenue. AT&T also forfeited $14.5 million of tax abatements to the city government, equivalent to the taxes forgiven since 1987. The refunded tax abatements were used to fund programs at the financially distressed
City University of New York for the 1991–1992 academic year. AT&T moved its headquarters to
32 Avenue of the Americas, its long-distance telephone building in Lower Manhattan, and removed the
Spirit of Communication statue. With the sale of the building, Burgee commented, "The period of making image buildings for companies appears to be over."
Renovation After Sony leased the building, it became known as the Sony Tower. In early 1992,
Gwathmey Siegel designed a renovation of the base, with Philip Johnson as consultant. The arcade space was to be converted into retail space; in exchange, the atrium was to be expanded with new planters and public seating.
Edwin Schlossberg was hired to design the new storefronts and redesign the annex. Johnson was not overly concerned about the closure of the arcade, saying, "It isn't that my ideas have changed. The period has changed." Conversely,
David W. Dunlap of
The New York Times said the changes were "unquestionably an improvement" both aesthetically and functionally. The
New York City Planning Commission had to review and approve the proposal. The Sony Tower was renovated between 1992 and 1994. Windows with bronze gridded frames were installed to close off the atrium, which became Sony stores, and the annex was converted into the Sony Wonder technology museum. The annex was completely gutted because, under guidelines set by the
Americans with Disabilities Act of 1990, the existing ramps and passageways were too steep. Inside, Dorothea Rockburne was commissioned to paint two fresco murals for the formerly bare sky lobby, and additional staircases, conference centers, and offices were installed on the office stories.
Use The new atrium and retail spaces, known as Sony Plaza, were completed in 1994, and the Sony Wonder museum opened in the annex that May. The atrium was criticized for being inhospitable to the homeless, as private security guards patrolled the space. Sony leased four stories at 555 Madison Avenue immediately to the east in February 1995. By the following year, Sony was renovating its space within 555 Madison Avenue; the company installed fiber-optic cables under Madison Avenue to connect its two buildings, and it installed microwave communications equipment atop 555 Madison Avenue. Sony had consolidated most of the operations for its
Sony Music Entertainment division at the Sony Tower on 550 Madison Avenue, for which
The New York Times noted that "such high-profile and elaborate space is appropriate and necessary". This was part of a move to consolidate Sony's United States operations away from the
Sony Corporation of America, which had overseen
Sony Pictures and Sony Music, and give more control over the United States operations to executives in Japan.
The Wall Street Journal described the equipment upgrades as indicative of "a long-term commitment to the area". In 2002, Sony exercised its option to purchase the building from the cash-strapped AT&T for $236 million, or —a relatively low rate given the building's location in Midtown Manhattan. Two years later, Sony contemplated selling the building once its merger with
Bertelsmann was completed. Part of the Sony Wonder museum was renovated in 2008 and reopened the following year. An accumulation of ice dislodged from an upper floor after
a February 2010 blizzard, breaking the atrium's glass ceiling and injuring several inside.
Chetrit ownership By 2012, Sony sought to sell off the Sony Tower, as the company perceived that the costs of keeping its American headquarters in Midtown were too high. Sony received over 20 bids, including from
Joseph Sitt's
Thor Equities,
Mitsui Fudosan, and a partnership led by the
Brunei Investment Agency. All of the bids proposed to convert at least part of the space to hotel or condominium use. In January 2013, Sony announced it was to sell the building to
Joseph Chetrit's Chetrit Group for $1.1 billion,
leasing back its offices there. Shortly afterward, Sony filed eviction proceedings against Joseph Allaham, a longtime tenant and Chetrit's friend, who operated a pizzeria and a restaurant in the base. Allaham ultimately decided to move his restaurant and retain his pizzeria. The Chetrit Group planned to convert the Sony Tower into condominiums and the first
Oetker Collection hotel in the United States. In February 2015, the developers filed a condominium offering that called for 96 residences, which were to be sold at a combined total of $1.8 billion. The offering included what was then considered Manhattan's most expensive residence, a three-story penthouse in the upper stories costing $150 million. Dorothea Rockburne expressed concern that the developers would not adequately preserve two of her frescoes in the sky lobby, which was set to be converted into the hotel's lobby. Sony permanently closed the Sony Wonder Technology Lab in January 2016. Over the following months, Sony moved its headquarters and stores south to
11 Madison Avenue.
Olayan Group ownership Redevelopment Following a declining real estate market in the 2010s, Chetrit abandoned its condominium conversion plan. Chetrit sold the building to The
Olayan Group in April 2016 for $1.4 billion, relinquishing the "Sony Tower" name. The Olayan Group and Chelsfield announced plans to rebrand 550 Madison Avenue and reconfigure the existing space, which was then empty besides Allaham's pizzeria. A group of banks including
ING Group,
Bank of East Asia,
Crédit Agricole,
Société Générale, and
Natixis provided $570 million in financing to facilitate the redevelopment. The pizzeria closed in September 2017. In late October 2017, The Olayan Group announced plans to renovate the building with designs by
Snøhetta, with
AAI Architects, P.C. as
architect of record. The firm planned to add a glass curtain wall along the base on Madison Avenue, as well as demolish the arcade and annex on the western end of the site, replacing it with a garden. The renovation, anticipated to cost $300 million, would allow the building's owner to raise rents to between , which would be among the city's highest office rent rates. Several architecture critics, architects, and artists voiced their opposition to the plans, and a November protest and petition drew media coverage. Shortly afterward, the LPC voted to calendar the building for consideration as a landmark. Though there were efforts to preserve the interiors, demolition of the building's original ground floor lobby began in January 2018. The LPC determined that the lobby's design had changed significantly when
Spirit of Communication was removed and the arcades were enclosed, making the space ineligible for interior landmark status. By February, the original lobby had been demolished. the commission stated that the building was among the "most important postmodernist buildings" worldwide. The LPC approved the updated plans in February 2019. The original plan to demolish the annex and atrium was also scrapped. In Snøhetta's updated plan, the atrium was to be planted with greenery and connected to 717 Fifth Avenue, and the atrium's roof and the annex were to be replaced.
Post-redevelopment The new lobby was completed in October 2021, Other major tenants included luxury fashion retailer
Hermès, which leased three stories, and private equity company
Clayton, Dubilier & Rice, which leased five stories. The atrium opened in November 2022 with three food stalls. The renovated building, known alternatively as 550 Madison, this became the Cote restaurant, which opened in 2026. By May 2025, nearly the entire building had been leased except for the 22nd and 34th floors. The Olayan Group refinanced 550 Madison Avenue in early 2026 with an $800 million loan, at which point it was 96% occupied. ==Impact==