An apparel company owned by billionaire Warren Buffett has inked a 50,000-square-foot, 10-year lease for offices at 200 Madison Avenue, the New York Observer reported, relocating from the Empire State Building.
Garan Incorporated will occupy the 575,000-square-foot building’s fourth floor for rents that average around the mid-$40s per square foot. The company previously squeezed into a 40,000-square-foot space at the Empire State Building and was eager to expand to a building that could accommodate all its staff on one floor.
Jim Saunders Noel Flag of Newmark Knight Frank represented Garan in the transaction. Saunders told the Observer that he had spent more than three years on the assignment.
“When you are vertically integrated, it doesn’t matter what kind of a tenant you are, there are redundancies that force you to take more space and be less efficient,” Saunders said. “You have to have two lobbies or entrance ways, dual sets of copying machines and other equipment whereas if you have one floor you can consolidate.” [NYO]