J.C. Penney Inks Full-Building Lease at Historic 200 Lafayette Street

J.C. Penney has signed a 130,000-square-foot lease to move its corporate headquarters from Dallas to the Cast Iron District in SoHo, where the century-old 200 Lafayette Street will seek LEED certification in connection with a $20 million renovation.

A couple of months ago, we noted the $50 million Kushner-CIM Group joint venture acquistion of 200 Lafayette Street and the JV’s plans for a $20 million, LEED-certified upgrade for the 1900s-era, 7-story property that once served as a manufacturing facility.

Now, the JV has a tenant for all 130,000 square feet of the tower’s renovated office space: earlier this week, J.C. Penney signed a lease to move its corporate headquarters expand its operations from Dallas – where it’s been based since 1987 – closer to New York City’s fashion industry. It’s a homecoming of sorts for the company – which has been led since last June by CEO and former Apple exec Ron Johnson – until then, JCPenney had been located at 1301 Sixth Avenue, and in New York City since 1914.

The company hopes that 200 Lafayette’s highly desirable SoHo location will assist in attracting and retaining employees and, presumably, with its rebranding (it’s now calling itself “jcpenney.”) Those same reasons, of course, continue to drive Midtown South’s cachet across a broad range of tenants, including technology companies.

According to the New York Post, which broke the story, the deal took just 45 days to paper and asking rents were $68 per square foot. Other companies that considered 200 Lafayette were Facebook, Armani, and Droga5, a growing ad agency with 23,000 square feet at nearby 400 Lafayette Street. Details about the status of the building’s 16,500 square feet of retail space and a timeframe for JCPenney’s move haven’t been released.

About Stephen Del Percio

Stephen Del Percio has written for gbNYC+ since 2006 and currently serves as in-house counsel for one of the world's largest engineering, construction, and technical services companies. He earned a B.Eng. from Columbia, his J.D. at William & Mary, and lives in New York City with his wife and daughter. You can follow Stephen on Twitter, email him at stephen@gbNYC.com, or join gbNYC on Facebook to continue the conversation.

about gbNYC

gbNYC is a multi-disciplinary consulting and real estate services firm. In addition to representing office tenants and commercial buyers in leasing and acquisitions, we also provide innovative consulting solutions from a unique, green building perspective. We advise on green building financial incentives, comment on proposed green building marketing strategies, author white papers, treatises, and market analyses, organize seminars on the LEED process and professional accreditation, and provide advice and analysis on green building risk management and the overall state of green real estate, leasing, and construction, in New York City and beyond.

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