Skanska, Aprio Sign Long-Term Leases at Empire State Building

Empire State Building. Image courtesy of Empire State Realty Trust

Empire State Realty Trust has signed two new office leases, totaling 40,000 square feet, at the 2.8 million-square-foot Empire State Building in Midtown Manhattan.

Skanska will continue its tenancy, which started in 2008, by relocating within the skyscraper from the current 24,391-square-foot location to 25,057 square feet, occupying a full floor.

Aprio will occupy 14,945 square feet of space at the tower, relocating its New York City office from 7 Penn Plaza. The firm will join the building’s current tenants including Linkedin, Turkish Airlines, Unipharm, Federal Deposit Insurance and The Alberleen Group, among others, CommercialEdge data shows.

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CBRE Vice Chairman Joseph Cabrera, together with Executive Vice Presidents David Glassman and Michael Gordon, negotiated on behalf of Skanska, while the landlord was represented in house by Vice President Shanae Ursini. JLL Managing Director TJ Hochanadel worked on behalf of Aprio, while ESRT Vice President Jordan Berger made arrangements on behalf of the owner, with the assistance of Newmark Vice Chairman Scott Klau.

A Manhattan landmark

ESRT has owned the Class A+ skyscraper since 2013. The REIT purchased the building in a $771 million portfolio deal from Helmsley Enterprises, according to the same data provider.

Located at 350 Fifth Ave., the high-rise underwent a $600 million improvement program and now includes more than 65,000 square feet of amenity-rich space featuring a common-area lounge, a private conference room, eight on-site dining spaces and a 15,000-square-foot fitness center.

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The property will also feature a 10,000-square-foot lounge, a basketball and pickleball court and golf simulators. Additionally, tenants have access to The Campus, an amenity center including multi-purpose space, an outdoor rooftop, a private lounge, meeting areas and green spaces.

Recent office leasing activity in Manhattan

Earlier this year, ESRT secured several other tenants at its Manhattan office buildings. In May, Rising Ground signed a 30-year, full-floor lease at 1333 Broadway, a 362,531-square-foot office tower, while in March Claims Conference signed a 33,803-square-foot long-term commitment at 1359 Broadway.

Manhattan’s office vacancy rate clocked in at 17.0 percent as of May, according to a recent CommercialEdge report, same as the national average. The value was up 20 basis points over the month and 290 basis points on a year-over-year basis.

In one of the borough’s largest leasing deals of the year so far, Fox Corp. and News Corp. signed two long-term lease extensions totaling 1.2 million square feet at Ivanhoé Cambridge’s 1211 Avenue of the Americas in Midtown. Fox Corp.’s 670,000-square-foot commitment will be effective starting December 2025, while News Corp.’s 486,000-square-foot agreement carries a December 2027 implementation date.