Empire State Building office occupancy rate tops 90% to buck NYC’s woes
When you’re a huge, publicly-traded company with more tha💮n eight million square feet of offices in a struggling market, it helps to have a world-famous Observatory on top of your most famous building.
Empire State Realty Trust’s third-quarter results revealed a solid overall leasing performance including 90.5% oc𝓰cupancy in Manhattan and &n𒁃bsp;comfortable liquidity.
But its most intriguing detail might be that 3Q Empire Stat꧅e Building Observatory revenue was up $37.6 millio🃏n, or 13.6% over the second quarter and 14% over 3Q in 2022.
Although visitation was onl﷽y 71% of♑ 2019 totals, visitors spent more, as noted by research analysts BTIG, who noted a “solid” overall leasing performance.
Meanwhile, LinkedIn added more than 25,000 s🐲quare feet to its space in the tower last mont🃏h, bringing its total to over 526,000 square feet.
At the same time, S𝄹tarbucks leased 26,000 square feet for its offices, moving from 370 Seventh﷽ Ave.
The landmark is 90.2% leased, according to ESRT CEO Anthony Malkin, in a market where 2🍃0% vacancy is the norm.
For good measure, King Kong’s favorite skyscraper just earned three awards for “excellence in building management, sustainability and community contributions” — the BOMA Grand Pinnacle Award, BOMA Earth Award, and the Manhattan Chamber of Commerce’s Landmark of the Year honor.
It’s an impr🉐essive record for a building whose future was supposedly “in doubt” according to a seriously misinformed New York Times stor🧸y in 2021.
We can add another major office tenant to ou💜r roster of companies in the market for new space.
Stone Peak Capital is said by a source to have a lease out for 75,000 square feet at SL Green’s 245 Park Avenue. SL Green leasing director Steven Durels had “no c🎉omment at this time.”
We reported last week that a number of large firms either haꦰd leases out or were𝓀 in advanced talks for expansion or consolidation space at several prominent locations.
Among them are BDT & MSD Part🌺ners for 100,000 squarꦐe feet at Olayan America’s 550 Madison Avenue, which a source said “practically a sure thing,” and a potential addition of 100,000 square feet by TD Bank at 22 Vanderbilt.
The bank💙 has 🍃200,000 feet at 1 Vanderbilt where it will remain.