Empire State Realty Trust lands 70K sf tenant at 1359 Broadway

Fertility benefits firm Progyny had been a subtenant

New York /
Mar.March 02, 2022 12:47 PM

Progyny CEO Pete Anevski and ESRT EVP of Real Estate Thomas Durels (LinkedIn, Empire State Realty Trust)

Empire State Realty Trust is heading to the delivery room with a new direct tenant at 1359 Broadway.

The REIT announced fertility benefits firm Progyny has agreed to lease more than 70,000 square feet at the Garment District building. The lease covers three floors, including one spanning 25,000 square feet that Progyny was already subleasing from IHS Markit.

While Progyny already occupies one floor, it will move into its second floor later this year and its third in 2024. According to the Commercial Observer, the lease is for 13 years and asking rent was in the mid-$60s per square foot.

Progyny was represented by a Newmark team including David Falk and Kyle Ciminelli. ESRT was represented in-house by Shanae Ursini and Jordan Berger, as well as by a CBRE team including Paul Amrich and Emily Chabrier.

“We look forward to expanding our presence in our corporate office in New York City with Empire State Realty Trust,” said Pete Anevski, Progyny’s CEO, in a statement.

Thomas Durels, executive vice president of real estate at ESRT, called Progyny a “welcome addition” to the tenant roster at 1359 Broadway.

Last year, Zentalis Pharmaceuticals, a biotech company focusing on cancer therapeutics, signed a 31,000-square-foot lease at the building.

The office portfolio for Anthony Malkin’s REIT was 85 percent leased at the end of 2021, down from 87 percent the previous year. The company’s retail space was also 2 percentage points less occupied than it was a year ago.

The office landlord recently made an unexpected move into the apartment business, purchasing two Manhattan apartment buildings in the fall for $307 million. As the office market continues to struggle, Malkin last month said the company is looking to add more multifamily to its footprint.

Progyny aims to make it possible for more people to have children by providing benefits including education and guidance, access to fertility specialists, a reduction of health care costs for employers and improved outcomes.





    Related Articles

    arrow_forward_ios
    L-R: Savanna's Chris Schlank, Eastdil Secured's Will Silverman, JLL's Bob Knakal (Photos by Paul Dilakian)
    Office royalty talk conversions, distress and the “downsize upgrade” trend
    Office royalty talk conversions, distress and the “downsize upgrade” trend
    Columbia Property Trust's Nelson Mills and 799 Broadway (Columbia Property Trust, 799 Broadway, iStock)
    Columbia Property Trust signs investment firm to 71K sf at 799 Broadway
    Columbia Property Trust signs investment firm to 71K sf at 799 Broadway
    East End Capital's Jonathon Yormak and 141 East Houston Street (141 East Houston Street, East End Capital)
    Boutique LES office scores blockchain firm as anchor tenant
    Boutique LES office scores blockchain firm as anchor tenant
    Vice Media CEO Nancy Dubuc and 225 Broadway (Getty Images, Google Maps, iStock)
    Refinery29 subleasing at 225 Broadway for move in with Vice
    Refinery29 subleasing at 225 Broadway for move in with Vice
    Naftali Group's Miki Naftali, BRP Companies' Meredith Marshall (Photos by Paul Dilakian)
    Miki Naftali, Meredith Marshall talk development, death of 421a
    Miki Naftali, Meredith Marshall talk development, death of 421a
    R-L: Willow's Kevin Danehy, Era Ventures' Clelia Warburg Peters, Fifth Wall's Brad Greiwe and The Real Deal's Hiten Samtani (Photo by Paul Dilakian)
    Real estate tech is coming for your business
    Real estate tech is coming for your business
    Industrious CEO Jamie Hodari and CBRE chief financial and investment officer Emma Giamartino (LinkedIn, CBRE)
    CBRE doubles down on flex-office provider Industrious
    CBRE doubles down on flex-office provider Industrious
    New York skyline
    Rising interest rates will dampen city’s investment sales market this year
    Rising interest rates will dampen city’s investment sales market this year
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...