The RealReal Modifies Lease to Downsize at 53 West 36th Street
By Abigail Nehring October 27, 2023 12:29 pm
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A big name in second-hand fashion asked for the next size down in its Midtown office space.
Luxury resale site The RealReal has signed a seven-year lease for 13,880 square feet on the 11th and 12th floors of 53 West 36th Street, downsizing by half from the 27,760 square feet it previously had in the property, according to a source with knowledge of the deal.
Asking rent for the space on the top two floors of the 12-story office building between Fifth Avenue and Avenue of the Americas was $57 per square foot, the source said.
The deal was first posted on the Instagram page Traded NY.
The RealReal is cutting its footprint four years after it signed a 10-year lease for 27,760 square feet in the building, Commercial Observer previously reported.
The company was founded in 2011 and scaled up quickly thanks to the enthusiasm of second-hand shoppers and about $600 million in capital it has raised from investors as of September.
But it is struggling to keep its profit margins high. Its stock took a nosedive two years after its initial public offering in 2019 and stayed there, losing more than 90 percent of its value in the aftermath of the pandemic.
The RealReal did not immediately respond to a request for comment about the decision to shrink its footprint at the Midtown property.
In addition to the Midtown office — where it offers in-person consignment appointments — The RealReal has three retail locations in New York City, including its flagship store at 80 Wooster Street in SoHo and stores at 870 Madison Avenue on the Upper East Side and 163 Court Street in Cobble Hill, Brooklyn.
Daniel Lolai and David Lolai of LSL Advisors represented the landlord, HK Associates, while Newmark (NMRK)’s Matthew Augarten, William Levitsky and Shannon Aja arranged the lease for The RealReal.
LSL Advisors and Newmark declined to comment.
Abigail Nehring can be reached at anehring@commercialobserver.com.
