"NMSDC's move reflects the transitions in the Penn Plaza district, which is no longer strictly focused on the fashion industries and is attracting a very diverse range of tenants," says Brian Waterman, the building's leasing and managing agent, in a release. Waterman, EVP and principal of Newmark Knight Frank, adds, "The area is now perceived simply as one of Midtown's most prominent general business hubs with unparalleled access to transportation. Recent deals at 1359 Broadway, including publicly-traded firms Equifax and Actimize, illustrate that same trend."

Another factor was the repositioning program at 1359 Broadway. A spokeswoman for landlord W&H Properties tells GlobeSt.com the $54-million capital improvements program at the property played a key part in attracting NMSDC to the 22-story, 478,836-square foot office tower, located between 36th and 37th streets.

Launched in late 2004 and completed last January, the improvements include a new lobby, new windows, a new HVAC system and upgraded building-wide systems. The upgrade program also includes pre-built office units ranging from 2,500 square feet to 13,079 square feet. The W&H source says NMSDC did not lease one of the pre-built spaces.