Empire State Realty Secures Long-Term Lease in Manhattan

1359 Broadway. Image courtesy of Empire State Realty Trust

Empire State Realty Trust has signed a 33,803-square-foot long-term lease with nonprofit organization Claims Conference at 1359 Broadway in Midtown Manhattan. The firm has been a tenant at the property since 2007 and, following the new agreement, will relocate to a new space within the building.

Savills Executive Managing Director Jason Schwartzenberg represented Claims Conference in the lease negations. Jordan Berger, vice president of leasing at Empire State Realty, along with CBRE Vice Chairmen Paul Amrich and Neil King III, Executive Vice President Emily Chabrier, Vice President Meghan Allen and Associate Shay Kenney brokered the agreement on behalf of the landlord. Lester Bleckner & Shaw LLP provided legal representation for Empire State Realty.

Completed in 1924, the 22-story office building underwent a complete renovation in 2005, according to CommercialEdge data. The property is equipped with various features to ensure energy efficiency and indoor environmental quality.

READ ALSO: A Closer Look at Tech Layoffs’ Impact on Office Leasing

The building comprises roughly 19,438 square feet of grade-level retail space, while its floorplates average at 24,292 square feet. The property’s tenant roster includes Progyny, which signed a 70,573 square-foot lease last year, Siense, BLJ Worldwide, AI Media Group, BMR Energy and SLCE Architects.

Manhattan’s growing office vacancy

The latest CommercialEdge report reveals that Manhattan maintained its position as the leading U.S. market in terms of asking rent, reaching $76.0 per square foot at the end of February, marking a 0.4 percent increase compared to the previous month. At that point, the borough’s vacancy rate hit 16 percent, marking a 2.9 percent expansion year-over-year.

Despite this, landlords inked several leases recently. Earlier this month, Temasek International signed a 26,062-square-foot lease renewal and expansion at RFR Realty’s Seagram Building in Midtown. ATCO Properties & Management also secured three lease extensions totaling 17,477 square feet across three office buildings.

Silverstein Properties signed a 44,000-square-foot commitment with StubHub at 3 World Trade Center in Lower Manhattan. The tech company will move its headquarters from Midtown.