Fashion House Secures 30% Rent Rate Reduction on Plaza District Office

Luxury fashion house Ralph Lauren may be setting a precedent for other big block tenants to follow, having negotiated an approximately 30% rent reduction on a per square foot basis as part of the renewal of its Plaza District headquarters at 650 Madison Avenue according to Fitch Ratings. Based on a 2020 report by bond rating firm KBRA, Ralph Lauren was paying $88 per square foot on its existing lease, indicating that the company would pay approximately $62 per square foot based on the 2020 figure. In addition to the reduced rent, as previously reported, the new lease will also result in an approximately 42% downsizing to 140,000 square feet from the roughly 240,000 square feet Ralph Lauren currently occupies within the 601,000-square-foot tower.