Empire State Realty Secures NYC Lease Expansion
Empire State Realty Trust has signed a 67,865-square-foot lease expansion at 1400 Broadway, a 937,892-square-foot office tower in Manhattan. Burlington Stores Inc. committed to a total of 170,763 square feet across five full floors at the building for 16 years.
The company has been a tenant at the Class A high-rise since 2010, when it signed a 35,182-square-foot lease agreement. That initial lease was expanded by the company three times. Colliers International Vice Chair Alan Desino represented Burlington, while the landlord was represented by Newmark Managing Director Neil Rubin, Vice Chair Scott Klau and Executive Managing Director Erik Harris, along with ESRT Vice President Shanae Ursini.
ESRT acquired the asset in 2014 in a portfolio transaction, when Cohen Brothers Realty sold 1400 Broadway and the 732,314-square-foot building at 111 West 33rd St. for $310 million, CommercialEdge data.
The LEED Gold-certified building came online in 1930 and went through a complete renovation designed by architecture firm Fifield Piaker Elman. The $45 million capital upgrade included a newly designed lobby, new entrance doors, two concierge desks, elevators and a tenant-only lounge. Other amenities include green spaces, an outdoor rooftop and a town hall.
The 37-story tower features floorplates ranging between 2,800 and 36,000 square feet and some 18,000 square feet of first-floor retail space. Other tenants include IPG, Kohl’s and Flagstar Bank, which assumed Signature Bank’s 313,109-square-foot lease for 15 years.
The transit-oriented property is located along the Broadway Pedestrian Plaza, less than a mile from Empire State Building and Rockefeller Center. John F. Kennedy International Airport is within 15 miles, while Two Manhattan West, a recently completed office tower is 1 mile away.
ESRT’s recent Manhattan deals
The news comes on the heels of ESRT’s 12,622-square-foot lease agreement at 250 W. 57th St. Commercial real estate platform Hanover Street Capital will occupy the space.
Last month, the company signed a 52,116-square-foot lease at Empire State Building with Greater New York Mutual Insurance Co. A few months earlier, Capco committed to 26,620 square feet at the 102-story tower.
According to a recent CommercialEdge office report, Manhattan had an average listing rate of $70 per square foot, well above the $37.6 national average. The market’s vacancy rate clocked in at 16.4 percent, 190 basis points lower than the county’s average.
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