Empire State Realty Trust Inc. has landed a new tenant at 1359 Broadway, a 481,167-square-foot office asset in Manhattan, N.Y. Bloomsbury Publishing Inc. signed a lease for 24,209 square feet with assistance from Cushman & Wakefield. An in-house representative alongside CBRE negotiated on behalf of the landlord.
Rising 22 stories, the building—designed by George & Edward Blum—debuted a century ago. Floorplates range between 8,690 and 24,495 square feet, while the ceiling height clocks in at 11 feet and 2 inches slab to slab.
The property’s upgrade program included lobby ceiling restorations, as well as an overhaul of the building’s systems including electrical, plumbing, HVAC and security. Being fully powered by renewable wind energy, 1359 Broadway attained WELL, Fitwel and Energy Star Certifications.
Other building tenants include New York State Energy Research and Development Authority, Crown Castle and Inmar Intelligence, among others. The retail tenant roster comprises Starbucks, Wolfgang’s Steakhouse and Panera.
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The property is within walking distance of Bryant Park and the Empire State Building, as well as Penn Station. In its vicinity, numerous quick-service restaurants, retail facilities and transit stops operate.
Cushman & Wakefield Executive Managing Director Stephen Bellwood alongside Associate Rachel Rosenfeld represented Bloomsbury in the negotiations. Empire State Realty Trust Vice President Jordan Berger together with a CBRE team including Vice Chairmen Paul Amrich and Neil V. King III, as well as Executive Vice President Emily Chabrier and First Vice President Meghan Allen, represented the landlord.
Publishers on Broadway
The independent publishing house—whose works include Harry Potter and Crescent City—had previously occupied the entire fifth floor at 1385 Broadway, just one block away from its new office space. Culbro owns the 533,500-square-foot asset, according to CommercialEdge data.
Bloomsbury U.S. President Sabrina McCarthy, who joined the firm this February from Ingram Publisher Services, commented in prepared remarks that her previous employer leased office space at 1400 Broadway, also one of ESRT’s properties.
Manhattan’s office leasing activity bucks national trends
Compared to June, Manhattan’s office vacancy rate dropped by 20 basis points during the third quarter, reaching 23.5 percent in September, according to a report by Cushman & Wakefield. Several of the factors leading to the decline in availability were the removal of five office buildings slated for residential conversion and the lack of new office developments for two consecutive quarters.
Combined, new office leases and renewals in Manhattan totaled 22.7 million square feet year-to-date through September—a 33.1 percent increase year-over-year compared to the 17.1 million square feet registered last year—Cushman & Wakefield revealed.
During the third quarter, new office leases totaled 5.3 million square feet, the same source shows. Although down 15.9 percent quarter-over-quarter, the figure ranked as the second-highest three-month period in two years.
Another new Manhattan lease closed earlier this month. Fintech company Maybern agreed to occupy 11,000 square feet at GFP Real Estate’s 10 Astor Place, a 156,000-square-foot office property.