J.Crew is in talks to renew its lease at 770 Broadway in what would be a roughly 300,000 s/f deal, sources say.
The firm occupies several floors in the 1.1 million s/f building, including part of the 10th floor and all of the 11th, 12th and 13th.
The clothing company, which opened its first retail store in Manhattan in 1989 before expanding to become a popular nationwide chain and one of Manhattan’s most prolific retailers, had been exploring its options whether to renew or relocate elsewhere, sources said.
The company was rumored to be considering other spaces in recent months according to brokers who had observed the company’s search process, including a potential deal at 100 Church Street, an office building in Lower Manhattan whose owner, SL Green, had priced its rents aggressively to lure large tenants.
Some sources described J.Crew’s search as more of an obligatory perusal of the market in order to try to enhance its leverage in a deal to remain at 770 Broadway rather than a determined effort to leave. J.Crew had expanded by about 60,000 s/f in the property at the end of 2009, moving offices it had at 15 Penn Plaza, a building that is owned by the same real estate investment trust that controls 770 Broadway, Vornado.
770 Broadway is something of a unique asset, a large Class A quality office building in midtown south, a neighborhood known more for its second tier office stock. If J.Crew was to relocate, it probably would have had to travel to either midtown or lower Manhattan in order to find a building of comparable quality, areas with a discernably less hip vibe.
David Goldstein, an executive with the tenant brokerage firm Studley, represents J.Crew. Goldstein couldn’t be reached for comment, nor could a media relations contact at J.Crew. Vornado also didn’t return calls.