Empire State Realty Trust held its quarterly earnings conference call and cited strong leasing statistics and Observatory revenue on Oct. 26. The REIT highlighted the advantages of its pure play New York City portfolio that consists of office, observatory, retail, and multifamily properties; its laser-focused approach to drive shareholder value; and notable achievements and awards for the Empire State Building and the portfolio.
See highlights from the investor call below!
Leased and Occupancy Rates Increase
Tom Durels, executive vice president, real estate at ESRT, noted in the earnings report that the company outperformed its peers with increases in both the leased and occupancy rates in its New York City office portfolio at 91.9% and 87.8%, respectively. Throughout the third quarter, ESRT signed a quarter of a million rentable square feet of new, renewal, and expansion leases.
LinkedIn Grows – Again!
Tech giant LinkedIn will relocate 118,646 in the Empire State Building’s tower to 143,778 square feet on three contiguous floors at the building’s base for a net expansion of 25,132 square feet. This relocation will bring LinkedIn’s total space at the “World’s Most Famous Building” to 526,541 square feet. This expansion from the company’s largest tenant adds to strong leasing activity at the Empire State Building, that recently includes major transactions with Capco, Skanska, and Aprio.
L'Occitane Welcomes Subsidiary
L’Occitane – a current tenant at 111 W. 33rd Street – signed a 9,497 square foot lease that will increase the beauty brand’s total space at the building to 30,459 square feet. Their affiliate brand, Elemis, will occupy the new, adjoining space.
Starbucks Joins the Office Roster
ESRT noted that Starbucks signed a new lease for a full-floor, 24,640 square foot office space at the Empire State Building. The company will relocate from its only New York City office to the iconic building, where it currently operates two different retail concepts which include a café and the new, three-story Starbucks Reserve Empire State Building.
The Empire State Building Thrives
Executive Vice President, Chief Operating Officer & Chief Financial Officer Christina Chiu announced that the Empire State Building Observatory benefitted from the significant recovery of New York City tourism as it generated $28.1 million of NOI, a 14 percent increase year-over-year. The reimagined Observatory Experience was recently voted the #1 attraction in the U.S in Tripadvisor’s Travelers’ Choice: Best of the Best for the second consecutive year.
Additionally, the Empire State Building received three prestigious awards for outstanding achievement in building management, sustainability, and community contributions, which included the 2023 BOMA Earth Award, the 2023 BOMA Grand Pinnacle Award, and the Manhattan Chamber of Commerce Landmark of the Year award.
Learn more about ESRT's Q3 leasing and earnings!
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