LVMH Secures 150K-SF ‘Swing’ Office Space at 590 Madison Avenue
By Nicholas Rizzi September 30, 2024 6:00 pm
reprints
Luxury retail giant LVMH joined this week’s six-figure lease club by securing 150,000 square feet at 590 Madison Avenue.
LVMH inked a deal for four floors of the 41-story building owned by the State Teachers Retirement System of Ohio. The new space is one block north of LVMH’s U.S. headquarters at 550 Madison Avenue, The Real Deal first reported.
Terms of the deal were not clear, but TRD reported asking rents were close to the $190 per square foot that LVMH agreed to in its 550 Madison lease last year.
“We can confirm we have entered into a lease with LVMH for approximately 100,000 square feet at 590 Madison Avenue,” a spokesperson for the State Teachers Retirement System of Ohio said.
Representatives for LVMH and Edward J. Minskoff Equities, which manages the building, did not immediately respond to requests for comment.
Last year, LVMH inked a deal to move its U.S. headquarters to 150,000 square feet at 550 Madison, a move first reported in the New York Post. LVMH will keep that space and use the new 590 Madison as “swing space” while it redevelops its footprints at 1 East 57th Street and 19 East 58th Street, TRD reported.
Aside from the office space at 590 Madison, LVMH is also considering leasing some of the retail space at the base of the building between East 56th and East 57th streets, according to TRD.
LVMH will take over the four floors of office space from IBM, which recently consolidated its New York City offices to One Madison Avenue.
Savills’ Jeffrey Peck and Daniel Horowitz represented LVMH in the deal while James Ackerson, Evan Haskell, Liz Lash, Brett Shannon and Stephen Siegel of CBRE (CBRE) brokered it for the landlord. A spokesperson for CBRE declined to comment and a spokesperson for Savills did not immediately respond to a request for comment.
LVMH’s office lease is the latest six-figure deal to be announced this week. Finance automated platform Ramp signed an expansion and renewal for 132,000 square feet at 28-40 West 23rd Street while Greek yogurt giant Chobani locked down 121,000 square feet at 360 Bowery.
These deals come after the city had an unusually busy summer leading to a booming third quarter. Leasing activity reached 23.1 million square feet during the quarter, a 25.1 percent increase compared to the same time last year, according to an Avison Young report.
Update: This story has been updated to include a comment from the State Teachers Retirement System of Ohio.
Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.
