Leases  ·  Office

Empire State Development Relocating to 117K SF at 655 Third Avenue

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New York State’s economic development arm, Empire State Development (ESD), plans to relocate its office down the block to 655 Third Avenue in Midtown East.

ESD signed a 20-year lease for 117,181 square feet on five full floors of the 30-story building between East 41st and East 42nd streets, according to landlord the Durst Organization. Asking rent was $69 per square foot.

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The state agency will take over space previously occupied by Mitsubishi International Corporation, which downsized to Durst’s One Five One skyscraper last year, according to the New York Post, which first reported the deal.

ESD had approximately the same amount of space nearby at 633 Third Avenue since at least 2005, last renewing it in 2013 and scoring huge savings on the rent in the process, as Commercial Observer previously reported.

Durst handled the latest deal in-house via Tom Bow, Ashlea Aaron and Bailey Caliban, while Newmark (NMRK)’s Moshe Sukenik and Brian Cohen represented the tenant along with Joan Brothers of Manhattan Boutique Real Estate.

A spokesperson for Newmark declined to comment. Brothers did not immediately respond to a request for comment.

“We are proud that Empire State Development has chosen 655 Third Avenue for its New York City headquarters,” Jonathan “Jody” Durst, president of the Durst Organization, said in a statement. “[The building] has a prime location one block from Grand Central Terminal, offering unparalleled access to transit and convenience in New York City.”

Other tenants in the 425,000-square-foot 655 Third include IT firm Abacus Group, college sports organization the Big East Conference and insurer Nippon Life Insurance.

Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.