Empire State Building sees increase in leasing, tourism

Real Estate Weekly, Nov 6, 2002

The Empire State Building announced increases in both tourism and leasing activity this year over the previous year. From January thru September 2002, the total number of ticket sales to the 86th Floor Observatory was nearly 12% higher than the same period in 2001. Additionally, a greater total number of renewal and new leases have been signed for space at the Empire State Building during January thru September of this year, versus the same period last year.

The strong business levels at the Empire State Building buck a nationwide trend of diminished tourism and leasing activity due to a down-turned economy and aftermath of the Sept. 11 attacks. The Empire State Building remains one of the most prestigious addresses and leading tourist attractions in the world.

A total of 35 lease renewals for 61,000 SF have been signed since January 2002, compared with 31 renewals and 39,700 SF during this period last year. A total of 57 new leases were signed from January thru September in both 2002 and 2001, though the aggregate square footage was less in 2002 by 8,000 SF (92,000 SF versus 100,000 SF). This can be attributed to the fact that, in a down-turned economy, many companies are seeking smaller amounts of space.

More than 2.5 million tickets to the Observatory were sold between January and September 2002, an increase of nearly 300,000 tickets from the same period in 2001. Included in this increase is a particular rise in the number of visitors from the New York tri-state area. The building estimates that 80% of its visitors this year have been from within the United States, with approximately 75% of those from New York, New Jersey and Connecticut.

The tenants who occupy the first 80 stories of the Empire State Building span numerous industries, including law, travel, media, apparel and fashion accessories, not-for-profit, communications, medicine and technology.

Above the 86th Floor, the Empire State Building mast and antenna now are home to all TV and FM stations broadcasting to Greater New York, including all that formerly transmitted from the World Trade Center.

"In a down-turned economy, when many buildings have seen occupancy drop as much as 50% and tourism has been lagging nationwide, the Empire State Building is more than holding its own," said Howard J. Rubenstein, spokesman for the Empire State Building. "The building is proud of its tenants and visitors. The increased activity on both fronts is a vote of confidence in the Building and in New York City overall."

The 102-story Empire State Building recently completed a $70 million modernization program that included new windows, upgraded computerized elevators, enhanced air conditioning, expanded security systems, exterior limestone restoration and new sidewalks.