Tiffany and Co. has signed on to stay at its Flatiron District global headquarters, but the jeweler is trying on a smaller size with L&L Holding Company.
The company agreed to a 10-year extension for its office at 200 Fifth Avenue, the New York Post reported. The deal extends the lease until 2036, but came with a sizable cut to Tiffany’s footprint at the building.
Tiffany has been occupying roughly 400,000 square feet at the office building. Following the lease extension, it will have only 287,000 square feet, lopping off almost a third of its footprint.
Terms of the lease weren’t disclosed, although rent on the extension is reportedly in the triple digits, accompanied by “nominal” concessions. David Levinson and David Berkey represented L&L in-house, while Savills’ Greg Taubin and Matthew Barlow represented Tiffany.
Tiffany’s reduction could prove to be an opportunity for the landlord, which recently completed $135 million in capital upgrades. There will soon be more than 57,000 square feet available, the first availability at the building since the upgrades were completed.
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Other tenants at the landmarked building include IMG, Grey Group and Eataly. In 2020, British ad giant WPP began the process of shifting Oglivy to the same building as Grey Group, a fellow subsidiary, as the company worked to reduce its own office footprint in the city.
In 2018, Tiffany announced a major renovation and expansion plan for its flagship store at the Trump Organization’s 6 East 57th Street, next door to Trump Tower. The $250 million project was expected to wrap up last year, but isn’t yet completed.
It’s not clear when the project will complete, but the three-story addition at the top of the building is visible, according to the Post.
[NYP] — Holden Walter-Warner