Vornado’s Penn District Leasing Momentum Picks Up
Steve Roth is running up the leasing numbers on his Penn District office properties.
On — a Swiss apparel and sneaker company formerly known as On Running — signed a lease for 85,000 square feet at Vornado Realty Trust’s Penn 1, the Commercial Observer reported. The company will be relocating its headquarters from Spear Street Capital’s 165 Mercer Street in Soho.
On will occupy all 61,000 square feet of the eighth floor, plus another 24,000 square feet on the seventh floor, including an outdoor terrace. The lease is for 15 years and the asking rent was $120 per square foot.
CBRE’s Sinclair Li, Patrick Moroney and Liz Lash represented the tenant, while Jared Silverman and Josh Glick represented Vornado in-house.
On was founded in 2010 by Ironman champion Olivier Bernhard. Tennis legend Roger Federer became a shareholder in 2019 and the company went public in 2021, raising $746 million during its initial public offering on the New York Stock Exchange.
Last week, French soccer star Kylian Mbappé became the company’s global ambassador. The company exceeded $1 billion in global sales during the second quarter and recorded a gross profit of $676 million. It has three stores in New York City and is negotiating for a fourth at the General Motors Building on Fifth Avenue.
Earlier this month, human resources technology company Gusto doubled its footprint at the 2.5-million-square-foot Penn 1, inking a 13-year lease for 38,000 square feet on the 47th floor and renewing its existing 38,000-square-foot lease on the 52nd floor for five years. The asking rent was $135 per square foot.
Penn 1 is the largest office building in Vornado’s Penn District, counting Samsung, Dell, Empire Health, Hartford Insurance, Jacobs Engineering, Morgan Stanley and Wells Fargo among its tenants.
Vornado’s $450 million renovation at Penn 1 included new plazas, a curtain wall, elevators, lobbies, LEED certification and other sustainability and carbon-cutting upgrades. It also added 160,000 square feet of food and recreational amenities at the base.
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Samsung doubles down at Vornado’s Penn 1
Gusto doubles up at Vornado’s Penn 1
Vornado can’t stop signing Penn 2 leases
