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Tiffany Cuts 260,000-SF Deal at Toy Center

NEW YORK CITY-The jeweler is consolidating its headquarters from three Midtown locations and expects to save $125 million over the course of the lease.

By Paul Bubny | Updated on April 29, 2010

NEW YORK CITY-In the second large-scale headquarters relocation at 200 Fifth Ave. since L&L Holding Co. bought the century-old property, Tiffany and Co. is consolidating into a 260,000-square-foot space there. The jeweler is relocating its headquarters personnel from 600 Madison Ave. and two other Midtown locations in a 15-year lease.

Tiffany chairman and CEO Michael J. Kowalski says in a release that the move to the former International Toy Center provides his company “an excellent opportunity to lock in meaningful long-term savings in occupancy costs, and to gain efficiencies from housing everyone in one location.” He adds that Tiffany is pleased that 200 Fifth is expected achieve LEED Gold certification, “consistent with Tiffany’s corporate sustainability philosophy.”

The company will relocate to four-and-a-half floors at 200 Fifth, with the move targeted for next spring. In a release, Tiffany says it expects to realize $125 million in occupancy cost savings over the term of the lease. It intends to sublease its existing properties through the end of their lease terms, which run through 2015, “but expects to recover only a portion of its rent obligations due to current market conditions.”

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