Ann Taylor

Client Situation

Ann Taylor, a leading women’s apparel company, retained Studley (now Savills Studley) to strategically evaluate the company's real estate portfolio throughout New York and Connecticut. Due to its rapid growth, the client looked to leverage Studley’s real estate services with the purpose of managing and accommodating the expanding operations in the most cost-efficient manner. At that time, Ann Taylor had split its operations by retaining the design and executive offices on West 57th Street, then expanding the support and administrative functions to 1372 Broadway, in the Garment Center.

Consideration Analysis

Studley’s review began with a demographic profile of Ann Taylor’s existing employees, with analysis of how a relocation of facilities might affect human resources, corporate taxes, municipal incentives, and other considerations. Then, once the geographic boundaries were established, Studley analyzed the cost and efficiency effects of various split operations scenarios versus total consolidation. The analysis included potential savings in the areas of human resources, information technology, and real estate expenses.

Result

Faced with a rapidly tightening market and a scarcity of large, expandable blocks of A-quality office space, Studley seized an opportunity to relocate Ann Taylor’s headquarters to a brand new, Class-A development in Midtown just three blocks from the client’s other New York City location. Through vigorous negotiations, Studley secured favorable rents and concessions, prominent lobby signage, significant expansion rights, and flexibility of use to accommodate Ann Taylor’s operational requirements. Simultaneously, Studley brokered an additional transaction which relocated a portion of Ann Taylor’s back office and data center to Milford, CT, further optimizing the firm’s regional real estate portfolio.

Summary Information

  • Property: Times Square Tower, New York, NY
  • Transaction Size: 297,500 SF
  • Transaction Type: Headquarter Relocation, Portfolio Management
  • Service Line: Office