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.





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