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Estée Lauder has joined the trend of office tenants in New York and across the country taking less space as they sign new leases.
The cosmetics company's existing lease in the General Motors Building is for 300K SF and expires in 2020. After signing a renewal with landlord Boston Properties, Estée Lauder will occupy 220K SF moving forward at an undisclosed higher rate, with an option to expand during its next lease, The Real Deal reports.
The iconic General Motors Building, set back from Fifth Avenue with a plaza adorned by an Apple Store, was built in 1968 but still is said to command rents over $100/SF. Boston Properties refinanced the building for $2.3B earlier this year.
The market is very flat in terms of pricing due to the delivery of new product in places such as Hudson Yards, Boston Properties President Doug Linde told TRD.
