Ralph Lauren renews 250K sf office space at RXR’s Starrett-Lehigh
Fashion company occupies more than 10% of West Chelsea building
Ralph Lauren is staying put at its West Chelsea offices, inking an extension at RXR’s Starrett-Lehigh Building.
The fashion company is renewing 250,000 square feet at 601 West 26th Street, the New York Post reported. The duration of the renewal is unclear. Asking rents at the building range from the low $60s to high $70s per square foot.
Ralph Lauren signed its initial lease at Starrett-Lehigh in 2017, according to the Commercial Observer. A year later, it tacked on 350,000 square feet to its footprint, consolidating and relocating several Midtown offices, though it retained its global headquarters at 650 Madison Avenue.
The large renewal is a positive sign for the office market, but there is some mystery shrouded around the deal that may put a damper on landlords’ celebrations: since Ralph Lauren extended to 450,000 square feet in 2018, there’s 200,000 square feet unaccounted for in the renewal.
It’s not clear if Ralph Lauren is downsizing or if the outstanding square footage isn’t up for renewal yet. The Real Deal could not immediately reach the property’s leasing team for comment.
CBRE’s Eric Deutsch and Ken Meyerson represented the tenant, while RXR’s Denise Rodriguez represented Scott Rechler’s firm in-house. Ralph Lauren occupies more than 10 percent of the 2.3 million-square-foot property, which also counts OXO, Johnson & Johnson and Fashionphile among its tenant roster.
If Ralph Lauren did cut off a chunk of its footprint while renewing at Starrett-Lehigh, it would be only the latest example of a downsizing renewal trend.
In the second quarter, tenants across the country signed 40 million square feet more of new leases than they did in 2020. But the vacancy rate surged due to softer renewals, according to the CoStar Group, which reported a 19 percent decrease in the size of average office leases when compared to the average between 2015 and 2019.
— Holden Walter-Warner