Shoe retailer Steve Madden leased 60,003 square feet of office space at Empire State Realty Trust's 501 Seventh Avenue in Midtown Manhattan. The 13-year deal carries asking rent in the low $60s per square foot, representing a relocation for the company from its current offices.
Empire State Realty Trust disclosed the transaction in its first-quarter earnings report Thursday. The lease underscores continued tenant interest in Class A Manhattan office towers despite broader headwinds in the commercial real estate sector. Midtown's 501 Seventh Avenue, a trophy property in the market's core, continues attracting major corporate tenants seeking modern workspace.
Steve Madden's decision to expand and relocate its footprint reflects growing confidence from established retailers in New York's office market. The deal also demonstrates ESRT's ability to land significant long-term commitments from quality tenants. At current market conditions, mid-$60s pricing for premier Midtown locations remains competitive for well-maintained properties with strong building amenities and location credentials.
The transaction provides a data point on tenant demand and rental rates in Manhattan's office sector as companies weigh their real estate needs in a hybrid work environment.