Empire State Building Opens New 10,000 Square Foot Empire Lounge, with 400-Person All-Hands Space, Multi-Sport Court, and Golf Simulators

Rhea-AI Summary

Empire State Building (ESB) has unveiled the Empire Lounge, a new 10,000 square foot amenity space on the building's Club Level. This addition brings the total tenant-exclusive amenities to 65,000 square feet. The Empire Lounge features:

• A 400-person town hall meeting space
• A basketball/pickleball court
• Two golf simulators
• Varied seating areas and phone booths

These new amenities complement existing offerings such as a 15,000 square foot Fitness Club, a conference center, and seven in-building food and beverage options. ESRT has invested over $650 million since 2008 in modernizing the Empire State Building, resulting in strong leasing with 93.4% occupancy as of June 30, 2024.

Positive

• Addition of 10,000 square feet of new amenities, bringing total tenant-exclusive amenities to 65,000 square feet
• Strong leasing performance with 93.4% occupancy rate as of June 30, 2024
• $650 million investment in modernization and sustainability improvements since 2008

Negative

• None.

Insights

Real Estate Analyst

The opening of the Empire Lounge at the Empire State Building is a strategic move by ESRT to enhance tenant experience and attract high-quality office tenants. This 10,000 square foot addition brings the total tenant-only amenities to 65,000 square feet, significantly boosting the building's appeal in a competitive market.

The new amenities, including a multi-sport court, golf simulators and a 400-person town hall space, cater to modern workplace trends that emphasize employee well-being and collaborative spaces. This investment aligns with ESRT's long-term strategy of modernizing and amenitizing their properties, having spent over $650 million since 2008 on capital improvements.

With a 93.4% occupancy rate as of June 2024, the Empire State Building demonstrates strong demand despite challenges in the office real estate market. This high occupancy, coupled with tenant testimonials like JCDecaux's, suggests that ESRT's investment strategy is paying off in terms of tenant attraction and retention.

For investors, this news indicates ESRT's commitment to maintaining the Empire State Building's competitive edge in the premium office space market, potentially supporting long-term revenue stability and growth.

Now Part of 65,000 Square Feet of Tenants-Only Amenities on the Building’s Club Level Which Include the 15,000 Square Feet Fitness Club in addition to the Tenants-Only 67^th Floor Conference Center, and Extensive Food and Beverage Offerings for Tenants

NEW YORK--(BUSINESS WIRE)-- Empire State Building (ESB) announced today the opening of the Empire Lounge – 10,000 square feet of new amenities on the building’s Club Level. The Lounge is available for everyday tenant use and features 17.5-foot vaulted ceilings, a variety of comfortable seating areas in tables, banquettes, and couches as well as phone booths for private communication. The Lounge includes a basketball/pickleball court for the exclusive use of the ESB’s Fitness Center’s tenant members, and “ESRTees,” two golf simulators.

The 400-person town hall meeting space (Photo: Business Wire)

Any office tenant during the workday can use the seating areas or reserve the golf simulators. The sports court can be converted into bleacher seating, one of the Lounge seating areas converts to a wet bar, and there is a full catering pantry. ESB tenants now can reserve for their private use a town hall meeting space for up to 400 people. ESRTees is also available for private use with a separately reservable lounge area with two golf simulators.

“The Empire Lounge at the iconic Empire State Building is another unique offering at a building we have fully modernized, amenitized, and made one of the most sustainable buildings of any age,” said ESRT Executive Vice President, Real Estate Thomas P. Durels. “ESRT continues to attract high-quality office tenants with our modernized office spaces in prime locations, excellent balance sheet and service, and state-of-the-art amenities that provide an enhanced tenant experience.”

The Empire Lounge adds to ESB’s already built-out tenant offerings that include a 15,000 square foot Fitness Club; a conference center; and seven in-building food and beverage options, which include Tacombi, STATE Grill and Bar, Starbucks Reserve, Chopt, Alidoro (coming soon) and New York City’s first Ghirardelli Chocolate store. Tenants of the Empire State Building also have access to The Broadway Campus amenities, which include a 250+ capacity Town Hall and Lounge at 1400 Broadway and a 150+ capacity rooftop lounge at 1333 Broadway that is soon to come.

“The amenities in the Empire State Building are amazing – they are best in class” said President and Co-CEO Jean-Luc Decaux of JCDecaux, the world’s largest out-of-home advertising company that has been a tenant of the Empire State Building since 2016. “You can start with the gym in the lower floor, which I know our employees are enjoying thoroughly, and go all the way to the bike storage room, which I use myself personally for my e-scooter.”

Since 2008, ESRT has invested more than $650 million in capital improvements to modernize the Empire State Building and make it energy efficient and sustainable with superior indoor environmental quality and unmatched tenant amenities. These upgrades have resulted in strong leasing and employee recruitment, retention, and productivity for office tenants, evidenced by the fact that it is 93.4% leased as of June 30, 2024.

More information about building amenities and current office space for lease is available on ESRT’s website.

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. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory that was declared the #1 Attraction in the World – and the #1 Attraction in the U.S. for the third consecutive year – in Tripadvisor’s 2024 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is the recognized leader in energy efficiency and indoor environmental quality. As of June 30, 2024, ESRT’s portfolio is comprised of approximately 7.9 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units. More information about Empire State Realty Trust can be found at esrtreit.com and by following ESRT on Facebook, Instagram, TikTok, X, and LinkedIn.

Source: Empire State Realty Trust
Category: Leasing

View source version on businesswire.com: https://www.businesswire.com/news/home/20241021355168/en/

Empire State Realty Trust

Brock Talbot

btalbot@esrtreit.com

Source: Empire State Realty Trust, Inc.

FAQ

What new amenities does the Empire State Building's Empire Lounge offer for ESRT tenants?

The Empire Lounge offers a 400-person town hall meeting space, a basketball/pickleball court, two golf simulators, varied seating areas, and phone booths for private communication.

How much has ESRT invested in modernizing the Empire State Building since 2008?

ESRT has invested more than $650 million in capital improvements to modernize the Empire State Building since 2008, focusing on energy efficiency, sustainability, and superior indoor environmental quality.

What is the current occupancy rate of the Empire State Building (ESRT) as of June 30, 2024?

As of June 30, 2024, the Empire State Building is 93.4% leased, demonstrating strong leasing performance.

How many square feet of tenant-exclusive amenities does the Empire State Building (ESRT) now offer?

With the addition of the Empire Lounge, the Empire State Building now offers a total of 65,000 square feet of tenant-exclusive amenities.