Empire State Realty Trust Signs 20 New Leases

Empire State Realty Trust, owner of the Empire State Building and eight other office buildings in Manhattan, reported 37 new or renewed leases for the third quarter in Manhattan.

The leases include:

  • 20 new leases comprising 224,125 rentable square feet, with an average starting rental rate of $60.46 per rentable square foot, representing an increase of 59.3% over the prior in-place rent on a fully escalated basis, and
  • 17 renewal leases, comprising 40,459 rentable square feet, with an average starting rental rate of $49.62 per rentable square foot, representing an increase of 8.3% over the prior in-place rent on a fully escalated basis.

Significant Leases Signed During the Third Quarter 2016

  • At 111 West 33rd Street, the Company signed a new lease totaling 86,492 rentable square feet with the Michael J. Fox Foundation for Parkinson’s Research for a term of 12.5 years.
  • At the Empire State Building, the Company signed a new lease for two full floors, totaling 46,537 rentable square feet, with JCDecaux, for a term of 16.0 years.
  • At 1359 Broadway, the Company signed a new full floor lease, totaling 24,169 rentable square feet, with Sisense, Inc., for a term of 10.3 years.

The Empire State Building was 90.1% occupied in the third quarter. With signed leases but not commenced, the iconic building was 91.5% leased.

Revenue for the Observatory on top of The Empire State Building grew 6.7% to $38.1 million in the third quarter, up from $35.7 million in the third quarter 2015. The Observatory hosted approximately 1,340,000 visitors in the third quarter 2016, an increase of 1.0%.

Empire State Realty Trust received an investment of $621.8 million from the Qatar Investment Authority in August.