ESRT Ends 2024 With 1.3M SF in Leases, Starts New Year With Strong Momentum

Empire State Realty Trust completed 1.3 million square feet of office and retail leases during 2024 — its highest annual volume since 2019 — and has already reported strong leasing momentum so far in 2025, according to the company’s fourth-quarter earnings report released Wednesday.

The real estate investment trust signed approximately 379,000 square feet of office leases during the fourth quarter of 2024, a nearly 25 percent increase from the 304,210 square feet signed during the third quarter, according to the report.

Plus, ESRT’s Manhattan office portfolio ended 2024 at 94.2 percent leased, an increase of 160 basis points year-over-year, the report said.

ESRT’s biggest leases in 2024 included publishing house Bloomsbury Publishing’s 24,209-square-foot deal at 1359 Broadway, financial advisory firm Pontera Solutions’ relocation to 40,679 square feet at the Empire State Building, and discount retail chain Burlington Stores’ expansion to 170,763 square feet at 1400 Broadway.

And the firm is keeping up the momentum in 2025. So far during the first quarter, ESRT has signed roughly 50,000 square feet of leases, with 20 more leases totaling 130,000 square feet in negotiations, Thomas Durels, ESRT’s executive vice president of real estate, said during an earnings call Thursday afternoon.

“We’ve had, and continue to have, strong leasing momentum due to our quality product and quality buildings,” Durels said during the call. “There’s a lot of positive momentum going into 2025, and I think the choices for tenants are fewer and fewer for quality buildings and quality landlords that are modernized, have good amenities and good locations.”

ESRT announced three major deals this week, including fintech firm iCapital’s expansion to 219,928 square feet at One Grand Central Place, travel technology company Booking Holdings’ deal for 64,563 square feet at the Empire State Building, and the New York State Energy Research and Development Authority’s expansion to 38,550 square feet at 1333 Broadway, as Commercial Observer first reported.

As for acquisitions, ESRT has been very active along North Sixth Street in Williamsburg. The company purchased $221 million worth of retail properties along North Sixth Street last year, and it’s looking to complete another $30 million deal later this year, the firm said in its earnings report.

The REIT’s space on North Sixth Street — which is occupied by prime retail tenants such as Google, Warby Parker, The North Face and Nike — has one remaining vacancy at 89-91 North Sixth Street, where Durels said the company has received proposals from “about a half dozen well-known brands” interested in the space.

Isabelle Durso can be reached at idurso@commercialobserver.com.