NEW YORK CITY-Coty Inc., the global beauty, fragrance and cosmetics company behind brands like Sally Hansen and Rimmel London, is expanding its corporate presence at the Empire State Building. After consolidating its workforce to the historic skyscraper last year, the company is leasing an additional 120,000 square feet in the tower, bringing its total occupancy to 320,000 square feet on six full floors for a 17-year term, GlobeSt.com has confirmed.
Anthony Malkin, president of Malkin Holdings, the firm that supervises the property, tells GlobeSt.com deal ties in with Coty’s decision to gradually move all of its Manhattan-based personnel under one roof. “They are seeking to accomplish creating a campus environment if you will within the building,” he says, noting that proximity to transit and amenities were major factors in the transaction. “It gives them the benefit of proximity to each other, but it also provides them with great access to a great neighborhood. I know that they feel that this location works out very well for them.”
Coty, which previously occupied space at One and Two Park Avenue in Midtown South, began its relationship at the Empire State Building after taking 86,000 square feet on the 14th floor and part of the 15th floor in 2008. Then in 2011, it leased an additional 101,736 square feet on floors 16 through 17. Now, the beauty company will be located on floors 14 to 19 following a build-out by owner Empire State Building Co. LLC.
The lease expansion also follows a $550 million makeover and green modernization of the 2.8-million-square-foot tower. The building—once known as a haven for small users—has been repurposed and re-branded as a class A office destination for large tenants, attracting interest from multinational and high-credit companies. “Systematically, we are removing tenants, consolidating spaces and leasing to new tenants,” he says, noting that the tower has also received a LEED Gold designation, which has helped attract new users as well. “Right now with this new lease to Coty, from the third floor to the 19th floor of the building, which once had 193 individual suites, it is now 100% leased to three tenants.”
Last year, the building closed its largest lease transaction ever when the US arm of Li & Fung took approximately 600,000 square feet in the building. Other tenants here include Skanska, LinkedIn and Federal Deposit and Insurance Co.
A spokeswoman for Malkin said asking rents on the deal were $51 per square foot. Richard Bernstein and Ralph Giordano of Cassidy Turley represented Coty in the lease negotiations. William Cohen and Ryan Kass of Newmark Knight Frank represented the landlord.
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