On Expands New York City Headquarters to 85,000 Square Feet at Vornado’s Penn 1

Swiss athletic apparel company On is significantly expanding its New York City headquarters, relocating to 85,000 square feet at Vornado Realty Trust’s Penn 1 (One Pennsylvania Plaza) in Midtown. The company, known for its sneakers and apparel, has signed a 15-year lease for space across the seventh and eighth floors, including a 24,000-square-foot portion on the seventh floor with an outdoor terrace and the entire 61,000-square-foot eighth floor. The asking rent for the deal was $120 per square foot.

On is moving from a comparatively smaller office at 165 Mercer Street in SoHo. This expansion reflects the company's rapid growth, with sales reaching $1 billion in the second quarter of this year, a 13.5 percent increase year-over-year. CBRE’s Sinclair Li, Patrick Moroney, and Liz Lash represented On, while Vornado’s Jared Silverman and Josh Glick handled the deal in-house. This substantial lease demonstrates a strong commitment to the Midtown office market and provides the global brand with a significantly larger footprint to accommodate its expanding operations. For developers and investors, this transaction highlights continued demand for prime office space in key urban centers.