ESRT Posts Office Gains and Observatory Falters

Strong third-quarter leasing has helped shore up office occupancy and prompted capital redeployment to buybacks and debt paydown.

Overview

In the third quarter of 2026 ESRT signed 189,477 square feet of leases, including 170,608 square feet of office deals, and raised office occupancy to 91.9 percent.
Major Empire State Building office deals included Corgan’s 15,157-square-foot expansion that brings its total to 41,192 square feet and an 11-year, 13,459-square-foot lease with Zenyth Advisors.
The Empire State Building observatory has seen a steep slump in visitor revenue, with a 48.5 percent drop in second-quarter observatory revenue and continued weak visitation into Q3.
ESRT sold 1359 Broadway for $217.5 million and previously sold 250 West 57th Street, and the company said it will use sale proceeds for share repurchases and to pay down debt.
ESRT’s funds from operations fell to $51.7 million in Q3 and the company hired Andrew Giancamilli, who started Oct. 1, to lead a program to reinvent the observatory’s customer acquisition and revenue model.