Empire State Building office vacancy rate reaches 90% to overcome New York City’s problems

Empire State Building office vacancy rate reaches 90% to overcome New York City’s problems

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When you’re a large, publicly traded company with over eight million square feet of office space in a distressed 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 strong overall leasing performance including 90.5% occupancy in Manhattan and comfortable liquidity.

But the most interesting detail may be that Empire State Building Observatory revenues for the third quarter were up $37.6 million, or 13.6%, over the second quarter and 14% compared to the third quarter of 2022.

Although visits accounted for just 71% of the 2019 total, visitors spent more, noted BTIG research analysts, who noted an overall “strong” rental performance.

Meanwhile, LinkedIn added more than 25,000 square feet to its space in the tower last month, bringing the total to more than 526,000 square feet.

Meanwhile, Starbucks 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 20% vacancies are the norm.

Empire State Building Observatory revenues in the third quarter increased $37.6 million, or 13.6% over the second quarter and 14% over the third quarter of 2022.
Getty Images

Fortunately, King Kong’s favorite skyscraper has received three awards for “excellence in building management, sustainability and community contributions” – the BOMA Grand Pinnacle Award, the BOMA Earth Award, and the Manhattan Chamber of Commerce’s Educator of the Year Award.

It’s an impressive record for a building whose future was supposedly “in doubt” according to a seriously false New York Times story in 2021.

We can add another major office tenant to our list of companies in the market for new space.

Stone Peak Capital has a 75,000-square-foot lease at SL Green’s 245 Park Avenue, a source said. Stephen Durrells, leasing director at SL Green, had no comment at this time.

245 Park Ave.
S. L. Green

We reported last week that a number of large companies either had leases or were in advanced talks to expand or consolidate space in several prominent locations.

They include BDT & MSD Partners for 100,000 square feet at 550 Madison Avenue in Olayan America, which one source said “is practically a certainty,” as well as a potential 100,000 square foot addition by TD Bank at 22 Vanderbilt.

The bank owns 200,000 square feet at 1 Vanderbilt, where it will remain.

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