Tiffany & Co. Cuts Over 110K SF From HQ In New Extension Deal

200 Fifth Ave.
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200 Fifth Ave.

Luxury jeweler Tiffany & Co. will keep its global HQ in Flatiron for an additional decade — but is cutting its square footage down from 400K SF to just 287K SF.

Tiffany’s newly signed lease extension will keep the company in place at 200 Fifth Ave. until 2036, the New York Post reports. Exact rents were not disclosed, but the Post said the lease extension involved a triple-digit rent and a “nominal” concession package from landlord L&L Holding Co.

With Tiffany’s reduced lease size, almost 58K SF is now available in the 800K SF property, the first vacancy for office space since the building underwent a $135M capital upgrade, according to the Post.

The decision to shrink its footprint in the building by roughly one-third is similar to what many other commercial tenants are currently doing, as availability in New York City's office market continues hitting new record highs even as leasing activity has picked up.

While Tiffany is shrinking its office space on Fifth Avenue in Midtown South, it is restoring and expanding its flagship at 727 Fifth Ave. in Midtown.

L&L Executive Vice President David Berkey represented the landlord in-house in the transaction, while Matthew Barlow and Gregory Taubin of Savills provided representation for Tiffany.

The building, first constructed in 1909, replaced a luxury hotel that had served as a gathering spot for Republican politicians in the 1890s in a bustling commercial Manhattan district.

When the hotel closed, a toy manufacturer took its place during both world wars and it served as a showroom for major international toymakers in the decades since. But manufacturing shifted to other, less expensive locales, leading to the decision to sell the building in the early aughts.

L&L has owned the building since 2007, when it purchased the then-distressed property for $480M just before the Great Recession. Over the following years, L&L signed tenants including Grey Global Group, Eataly and IMG as tenants.

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