State Gives Avon $4M To Downsize By 150k SF, Move Downtown

Cosmetics giant Avon has signed a 91k SF lease at Brookfield Property Partners’ One Liberty Plaza, cutting down its New York City office footprint by more than 150k SF.

The company will move about 400 employees to the space, spread out over two floors, the Commercial Observer reports. In return for signing the lease, the state-affiliated Empire State Development Corp. will grant Avon $4M in performance-based tax credits over the next decade and $600k for tenant improvements on its space.

Avon's current space at 777 Third Ave. is for 247k SF, so the tax breaks seem to have been a calculus by the ESDC that Avon would leave the city entirely without financial assistance. Its old lease expires in 2025. Avon has agreed to foot the bill for $9.4M in build-out costs as well.

Avon CEO Scott White said the move to Lower Manhattan was motivated in part by the need for “an emerging and high-energy location to inspire our innovative, entrepreneurial culture.”

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