NEW YORK CITY-The Empire State Building, which until recently was known for a large roster of small-space users, has signed another full-floor tenant. Specialty pharma company Noven Pharmaceuticals has leased the entire 37th floor at the 2.8-million-square-foot office property, relocating from another Midtown icon, the Chrysler Building.
William Cohen, EVP and principal at Newmark Knight Frank, says in a release that the deal “demonstrates the transformation of the Empire State Building.” Cohen heads the leasing program at 350 Fifth Ave., and represented W&H Properties along with Newmark colleagues Ryan Kass and Julie Christiano. James P. Quinn, Gary Youm and Nina Marroccoli of Jones Lang LaSalle represented Noven in the lease negotiations.
Noven plans to movie into its new space this summer. A W&H spokeswoman tells GlobeSt.com the deal is for 10 years abd 10 months. Asking rents were in the mid-$30s per square foot, according to the New York Post, which first reported the deal in late May.
The Noven deal is another product of the $550-million repositioning program under way at 350 Fifth, which has halved the property’s tenant roster since its inception in 2006. For most of its eight decades, the ESB has had a tenancy profile born of the economy in which it opened its doors. "Buildings go in cycles, and the Empire State Building was completed in the middle of a depression—not a recession, a depression," Cohen told GlobeSt.com in March. "Hence, you had smaller tenants."
Since the launch of the Empire State ReBuilding program, the property’s tenant roster has been reduced from nearly 600 to fewer than 300, initially under the direction of Stephen Eynon, then of CB Richard Ellis, and more recently via a Newmark team that took on the assignment this past October. Along the way, it has attracted a number of full-floor space-users including Skanska, Coty, the Federal Deposit Insurance Corp., Taylor Communications and Funaro.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
