If the shoe fits, keep leasing it.
Women’s fashion designer Tory Burch is enjoying the fit at Savitt Partners’ 11 West 19th Street, renewing its 130,000-square-foot space for 13 years, the Commercial Observer reported. The asking rent at the Flatiron District headquarters was $72 per square foot.
Tory Burch has called the top five floors of the 11-story building its headquarters for more than a decade. Savitt’s Brian Neugeboren expressed optimism about the message the lease sends about the future of in-person work for the company, as well as the partial conversion by the building’s only other tenant, Capital One, to a direct lease.
Neugeboren and Bob Savitt represented the landlord in house. Mark Mandell of Cushman & Wakefield and Jeff Binswanger of Binswanger International represented the fashion designer.
The fashion label, best known for its preppy-influenced accessory collections, was founded in 2004. In addition to its office headquarters, the company also has three retail locations in Manhattan, including one at Hudson Yards.
The company’s flagship in Manhattan is located at 151 Mercer Street in Soho and has been the site of numerous lawsuits regarding property damage related to construction. Tory Burch was sued over work at the site in both 2015 and 2016.
The beleaguered Manhattan office market has enjoyed spots of optimism in the past week as several major lease renewals unfolded, suggesting that not every company is ready to embrace a permanent work-from-home scenario.
Read more
Public relations giant Edelman recently renewed its 173,000-square-foot office space at Jack Resnick & Sons’ 250 Hudson Street. Financial terms of the renewal were not disclosed, but the lease is for 15 years.
Still, two renewals spanning slightly more than 300,000 square feet aren’t the final say on the fate of Manhattan’s office market. Office occupancy has stubbornly remained around 40 percent and major tech companies have pulled back on growth plans in the city.
Leasing volume in the borough dropped 3.9 percent to about 7.3 million square feet in the second quarter, according to Colliers. The vacancy rate for the quarter was 17.2 percent, down from the previous quarter but up year over year.
— Holden Walter-Warner