Empire State Building Lands New Tenant for Top Floors

Empire State Realty Trust has inked a 27,866-square-foot lease at the 2.8 million-square-foot Empire State Building in Midtown Manhattan. Management consulting firm Kearney will occupy a duplex on the two highest office floors of the skyscraper.

The new tenant will join companies such as LinkedIn, Federal Deposit Insurance, The Alberleen Group and Coty, according to CommercialEdge information. In January, Greater New York Mutual Insurance Co. also signed a full-floor lease at the 102-story landmark.

JLL Executive Vice President Matt Felice, Managing Director Gil Ohls and Executive Managing Director Barbara Winter represented Kearney in the lease negotiations. Newmark Vice Chair Scott Klau, Executive Managing Director Erik Harris and Managing Director Neil Rubin worked on behalf of the landlord, together with ESRT Vice President Jordan Berger.

Kearney will be moving its New York team in the Empire State Building from 7 Times Square.

Empire State Building, up close

ESRT acquired the iconic asset in 2013 as part of a $711 million portfolio transaction with Helmsley Enterprises, the same source shows. Completed in 1931, the high-rise was fully renovated in 2011 and went through cosmetic upgrades in 2019, the latter involving a $650 million capex program.

The Class A tower encompasses more than 65,000 square feet of amenities, including a conference center, a fitness center, seven on-site dining options, pickleball and basketball courts, two golf simulators and a common-area lounge.

Floorplates at the LEED Platinum-certified skyscraper range from 12,905 to 100,512 square feet. Sixty-four passenger elevators serve the building’s employees, who also have access to more than 127,000 square feet of retail space. Soon, the landmark will also feature the Empire Lounge, a multipurpose area that will be able to accommodate more than 400 persons.

Large office leases are still happening

Manhattan’s office vacancy rate clocked in at 16.2 percent as of May, below the 17.8 percent national average, according to a CommercialEdge office report. Additionally, the metro’s average advertised rate was $71.30, almost double the $37.72 registered nationally.

Recently, several companies inked large leases in the borough. HSBC opened its headquarters totaling 265,000 square feet within The Spiral at Hudson Yards, a 2.8 million-square-foot building owned by Tishman Speyer. The bank will occupy the space for at least 20 years.

Other notable leases in the area include Bain & Co.’s 235,200-square-foot agreement at 22 Vanderbilt, Milstein Properties’ 1.1 million-square-foot tower on Madison Avenue.