Burlington Stores, Inc. Expands by 67,865 Square Feet to Occupy a Total of 170,763 Square Feet at 1400 Broadway
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Insights
The recent lease expansion by Burlington Stores at 1400 Broadway signifies a noteworthy trend in commercial real estate, where anchor tenants consolidate and expand their presence in strategic locations. This move by Burlington, increasing its footprint within Empire State Realty Trust's (ESRT) portfolio, underscores a confidence in ESRT's property management and the value of its locations. The 16-year lease term for the additional space aligns with Burlington's existing lease, indicating a long-term commitment to the site.
From a real estate perspective, the transaction speaks to the 'flight to quality' trend, where tenants prioritize well-located, modernized properties with robust amenities. ESRT's focus on energy efficiency and modern amenities, such as the new all-hands space, is a competitive advantage that can attract and retain high-caliber tenants. This is particularly relevant in a post-pandemic environment where office space needs are evolving and tenants are more discerning about their workplace environment.
For investors, Burlington's lease expansion with ESRT is a positive signal of ESRT's financial health and the attractiveness of its real estate portfolio. The long-term lease provides stable cash flow and reduces vacancy risk, which is critical for real estate investment trusts (REITs). The choice of Burlington to expand within ESRT's portfolio rather than relocating to another landlord's property could be seen as a testament to the quality of ESRT's assets and management. This could potentially have a favorable impact on ESRT's stock, as it reflects the company's ability to maintain and grow relationships with key tenants.
The deal also highlights the resilience of certain segments of the commercial real estate market, despite broader challenges such as the rise of remote work. The commitment to a 16-year lease suggests that Burlington anticipates a stable or growing demand for its office space needs, which could be indicative of its business outlook and the retail sector's recovery trajectory.
Analyzing the broader market implications, the lease expansion is a microcosm of the ongoing transformation within the New York City office market. The demand for high-quality office spaces, as evidenced by Burlington's decision, suggests that despite the increase in remote work, there remains a strong market for office spaces that offer convenience, modern amenities and energy efficiency. This aligns with broader trends where companies are reimagining their office environments to attract and retain talent, as well as to foster collaboration and company culture.
The strategic location of 1400 Broadway, within the commuter triangle and its proximity to transportation and other amenities, positions it as a desirable address for businesses. This may lead to increased competition for similar properties and could potentially drive up leasing rates in the area. The transaction could also serve as a bellwether for other businesses considering expansion or relocation, signaling confidence in the long-term value of premium office spaces in urban centers.
1400 Broadway (Photo: Business Wire)
After an initial deal in 2010 for 35,182 square feet, Burlington has expanded with ESRT three times at 1400 Broadway for 135,581 additional square feet of space.
“Our longstanding partnership with Burlington grows stronger with this expansion, and further proves ESRT properties as top-of-tier office spaces in
Located along the Broadway Pedestrian Plaza in the commuter triangle, 1400 Broadway provides convenient access to nearby transportation, dining, lodging, and entertainment. ESRT’s amenity rich portfolio includes a new 170+ person all-hands space at 1400 Broadway that features a wet bar; three large presentation flatscreens; video conferencing capabilities; sound system; and charging stations. The new all-hands space connects to 1400’s popular tenant lounge that accommodates more than 70 people.
Alan Desino of Colliers International represented Burlington in the lease negotiations. Shanae Ursini, Scott Klau, Neil Rubin, and Erik Harris represented the property owner.
More information about 1400 Broadway can be found online.
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. The company is the recognized leader in energy efficiency and indoor environmental quality. ESRT’s flagship
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Source: Empire State Realty Trust
Category: Leasing
View source version on businesswire.com: https://www.businesswire.com/news/home/20240208772474/en/
MEDIA:
Empire State Realty Trust
Brock Talbot
347-804-7863
btalbot@esrtreit.com
Source: Empire State Realty Trust, Inc.
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