In the latest example of a major corporation moving Downtown, global style house Hugo Boss Fashions Inc. has signed a 68,793 square foot lease to relocate its U.S. business operations to 55 Water Street in Lower Manhattan.
The German luxury fashion company, which is currently located in the Starrett-Lehigh Building at 601 West 26th Street, leased the entire 48th floor of the 54 story, 3.8 million square foot office building. Hugo Boss is expected to take occupancy mid-2015.
According to Savills Studley’s Executive Managing Director Greg B. Taubin, every building below 42nd street with one full floor large enough to accommodate the company’s real estate needs was examined throughout the course of an exhaustive two-year space search. 55 Water Street provided the globally recognized retail brand with an exceptional opportunity to upgrade both their space and efficiencies. Taubin said, “Aside from the competitive lease terms, the 48th floor in 55 Water allows Hugo Boss to house its operations on a very efficient floor plate, in a building with state of the art infrastructure and helicopter views on all sides. In addition, securing rights for event space on the building’s elevated acre-park along with the new building amenities helped solidify the transaction.” The park, a pristine acre of open space on the third floor of 55 Water, strengthens Hugo Boss’ brand positioning and offers unique opportunities for brand promotion and special events.
Mr. Taubin represented Hugo Boss in the 15-year transaction, while CBRE represented the landlord, New Water Street Corp which is the investment arm of the Retirement Systems of Alabama. Asking rents have recently increased to $54 per square foot.
“A lot of strategic thinking went into this process and we are very pleased with the end result. This location is very convenient for our existing employee base and we are excited to begin our next journey in a thriving Lower Manhattan,” said Jim Kurko head of Hugo Boss real estate.
Headquartered in Metzingen, Germany, the brand world of Hugo Boss brands covers classic to modern apparel, eveningwear and sportswear, shoes, leather accessories as well as licensed fragrances, eyewear, watches, children’s fashion, home textiles and mobile accessories. As of fiscal year 2013, the company has nearly 12,500 employees and net sales of $2.4 billion EUR. Hugo Boss is listed on the Frankfurt Stock Exchange (FWB) under the ticker symbol BOSS.