Saks Deal at West 23rd Complex Spurs Others: 83K Feet

Chelsea West 23rd Street Complex 

Hardly a reputed bargain hunter, Saks has started a trend in snapping up affordable office space.

After the department store owner quintupled its space this summer with a 28,000-square-foot lease in Chelsea’s West 23rd Street complex, it’s spawned several imitators. Three tenants have signed 83,000 square feet of deals in the building.

The Saks lease was “the warning bell that space is going to go,” James Buslik of Adams & Co. Real Estate told The Commercial Observer. Tenants realized “prices aren’t going to go down. They’re going to go up.” Asking rents are $32 to $34 a square foot.

The complex, which spans 53 West 23rd Street, 49 West 23rd Street and 30 West 24th Street, is also basking in the arrival of Tiffany jewelers and Eataly nearby, which “helped seal the deal,” Mr. Buslik said. “It’s a very hot area.”

Furniture company Anthony Lawrence has signed a 12-year renewal and expansion for 44,419 square feet. “Where else are they going to find 45,000 feet on top of a subway?” said Mr. Buslik. Newmark Knight Frank represented the tenant.

Tremor Media, an online ad company, signed an 11-year deal for 22,225 square feet. Bill Peters and Sean Black of Jones Lang LaSalle represented the tenant.

Finally, invitation maker Art Scroll, which has been in the building for 15 years, shows no signs of wanting to leave the party. The tenant has signed a five-year, 16,450-square-foot renewal. Adams & Co. represented both the tenant and landlord.

Mr. Buslik and Alan Bonett represented the landlord in all of the transactions. There’s another lease out with a Saks Deal at West 23rd Complex Spurs Others: 83K Feet