Freshfields Bruckhaus Deringer is set to relocate its headquarters in New York in a move that will significantly expand the firm's presence in the city.

The new office will be located on East 53rd Street at 601 Lexington – formerly known as the Citigroup Center – under a lease signed last week.

The move, which will increase the firm's office capacity in New York by over 50%, is due to take place by the middle of 2011. Freshfields' current New York HQ is at 520 Madison Avenue, where it occupies 70,000 sq ft of space. The new premises will see that figure rise to 110,000 sq ft.

The news follows a number of hires for the magic circle firm in New York in the past year including a trio of litigation partners from firms including Kramer Levin Naftalis & Frankel and Vinson & Elkins, while former Bank of America deputy general counsel David Onorato also joined the firm last year.

Freshfields regional managing partner for the US, Julian Pritchard, said: "We are close to being out of space at this point and the outlook, which we expect to include further growth, both homegrown and lateral, is going to necessitate some more room.

"It is a landmark New York building – where our New York practice will be right at home."

Freshfields was advised by real estate firm Studley, while the landlord was advised by Jones Lang LaSalle.

News of the move comes after Freshfields launched a global investigations practice in February this year, which will advise multinational corporates on regulatory issues relating to corruption and financial reporting. The 138-lawyer group will be jointly led out of London and New York.