American Eagle is setting up shop in Midtown South, and a new high point for Manhattan office leasing this year.
The clothing retailer leased over 338,000 square feet at 63 Madison Avenue, a NoMad office building owned by a partnership of George Comfort & Sons, Loeb Partners Realty and Jamestown. The owners announced the relocation of the headquarters to the 15-story tower, marking New York City’s largest such deal so far this year.
The 20-year deal includes a direct lease with the building’s owners for 108,194 square feet across the entire seventh and 11th floors of the 860,000-square-foot tower.
It also includes a sublease with CBS. The broadcaster agreed to hand over the eighth, ninth and 10th floors for a total of 162,000 square feet that will eventually convert into a direct lease.
The retailer is moving from the Tiffany Building at 401 Fifth Avenue, also in Midtown South.
A team from Savills represented the retailer in the transaction.
The building owners were represented by George Comfort & Sons’ Mr. Duncan, Matt Coudert and Alex Bermingham. Cushman & Wakefield’s Mark Boisi represented CBS in its sublease.
The property, which has retail space anchored by Whole Foods Market, is fresh off an extensive renovation, which included a refurbished lobby.
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The peak deal, and the building’s renovation, comes as the neighborhood around it appears due for a resurgence of its own.
Midtown South previously earned the moniker “Silicon Alley” after TAMI (technology, advertising, media, and information) tenants flooded available office space in the 2010s. Demand from the sector has since cooled and availability has ticked up to 18.6 percent, just above the city average.
The city is embarking on a rezoning push to open up parts of the faded office mainstay to housing development.