The Swiss sports shoe and apparel company On is relocating and expanding its New York corporate headquarters, taking 85,000 square feet at Vornado Realty Trust's Penn 1. This was confirmed by Commercial Observer.
The company, formerly known as On Running, was previously located in a comparatively small office at Spear Street Capital's 165 Mercer Street in SoHo. According to industry sources, On will occupy the entire eighth floor of Midtown's 1 Pennsylvania Plaza with 61,000 square feet, as well as 24,000 square feet on part of the seventh floor, where the company will have access to an outdoor terrace. The lease agreement was concluded for 15 years, with the asking rent at $120 per square foot.
A CBRE team consisting of Sinclair Li, Patrick Moroney, and Liz Lash represented On in this transaction. Vornado was represented internally by Jared Silverman and Josh Glick.
Company Growth and International Presence
On was founded in the Swiss Alps in 2010 by Ironman champion Olivier Bernhard. He later brought in his friends Caspar Coppetti and David Allemann, now co-CEOs, to shape the company. Already in 2012, Swiss triathlete Nicola Spirig wore the brand's Cloudracer shoe, which boosted sales. Tennis star Roger Federer became a shareholder in November 2019, and in July 2020, the company launched a shoe called “The Roger”. In September 2021, the company went public on the New York Stock Exchange, raising $746 million.
On promotes its direct-to-consumer activities and pursues the mission to “ignite the human spirit through movement” by offering “world-class shoes, apparel, and accessories for high-performance running, outdoor, training, everyday activities and tennis,” as stated on the company's website. On's brand message – “Dream On” – resonates with consumers in over 90 countries. Sales reached $1 billion in the second quarter of this year, an increase of 13.5 per cent year-on-year, with a gross profit of $676 million. In mid-September, French football star Kylian Mbappé even switched from Nike to On, becoming their global brand ambassador.
Retail Strategy in New York City
On already operates stores in New York City at 162 Fifth Avenue in the Flatiron District, 363A Lafayette Street in NoHo, and 93 North Sixth Street in Williamsburg, Brooklyn. According to sources, the company is also negotiating to take over the former temporary Dior store in the General Motors Building at 767 Fifth Avenue. A team from Colliers led by David Green and Steven Soutendijk from Cushman & Wakefield represent this space and the owner BXP at this location. The store at 767 Fifth Avenue comprises 6,552 square feet on the ground floor, 743 square feet on a mezzanine level, 5,201 square feet in the basement, and 1,919 square feet of adjoining storage space, totalling 14,415 square feet.
