UPDATED March 3, 1:15 p.m.: An engineering firm signed a lease at the Empire State Building as owner Tony Malkin works to save the iconic property from the perils of remote work.
STV leased 65,000 square feet at 350 Fifth Avenue, the Commercial Observer reported. Executives for landlord Empire State Realty Trust previously disclosed that an engineering firm took that amount of space in January and Malkin said during an earnings call that the tenant was coming from Park Avenue South; STV is relocating from 225 Park Avenue South.
The company, which specializes in architecture, contracting and engineering work, will occupy the full 10th and part of the 11th floor of the 102-story tower. Asking rent for the 16-year lease was $69 per square foot.
STV is expected to move to the Empire State Building next year. Savills’ David Goldstein and Dina Zavislak represented the tenant in the deal, while ESRT was represented in-house by a team including Ryan Kass and Jordan Berger, as well as by several Newmark brokers.
Malkin’s real estate investment trust also recently inked half-floor leases at the building with OFS Brands and Resolution Life, which combined to take 23,000 square feet.
Malkin is still facing a difficult battle to keep the building relevant as remote work continues to rise.
This year, the 2.7 million-square-foot skyscraper is expanding its amenities offerings to 65,000 square feet, including a pickleball court and a golf simulator. Starbucks also opened a three-story, high-end Reserve outpost in the building a few months ago.
Read more
Commercial
New York
Empire State Realty Trust buys Noho property for $115M
Residential
New York
Tony Malkin’s NYE fireworks spark New Zealand blaze
The property underwent a $550 million renovation in 2006, which included an overhaul of the building’s infrastructure. The average rent was slightly more than $65 per occupied square foot at the end of last year.
Company executives said tenants leased 100,000 square feet in the fourth quarter and early 2023 at the building, which was 82 percent occupied at the end of the year.
— Holden Walter-Warner