Employees of Allied Universal who commute will have to get used to a different train schedule.
The security firm signed a 30,000-square-foot, 10-year lease at Empire State Realty Trust’s 501 Seventh Avenue, the Commercial Observer reported. The asking rent for the space was $62 per square foot.
The firm will be moving to the Garment District from another Empire State Realty Trust property, One Grand Central, where its footprint was just 12,000 square feet. It’s unclear when Allied will move out of the office it has occupied for the past five years.
Allied has seven locations in the city. Its latest is very close to another one of its outposts, 229 West 36th Street.
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A Cushman & Wakefield team including Louis D’Avanzo and Michael Baraldi represented Allied in the lease negotiations. A Cushman & Wakefield team including Ron Lo Russo and Heather Thomas represented ESRT, as did Shanae Ursini in-house.
The 18-story, 461,000-square-foot building’s tenants include Argo Group and Captivate. Warnaco Group, a subsidiary of PVH Corporation, renewed and expanded its lease in 2013 to hit a footprint of 223,000 square feet; PVH owns fashion brands such as Tommy Hilfiger and Calvin Klein.
Tony Malkin’s company recently inked a deal at One Grand Central that more than offsets Allied’s departure. This month, fintech firm iCapital expanded its footprint at the building for the fourth time since 2017, adding 59,000 square feet to its space. The company now leases 141,000 square feet there.
Any expansion is notable for the beleaguered Manhattan office market. Leasing volume dropped 3.9 percent in the second quarter, according to Colliers. There was a slight improvement in the borough’s lofty vacancy rate, but it still rose year-over-year and sat close to February’s 17.4 percent record.
— Holden Walter-Warner