Case Study Patek Philippe
Space 34,755 sq ft
Type Luxury Retail
Location 1 Rockefeller Plaza
We joined forces with Patek Philippe, a renowned luxury watch brand as they were expanding their footprint in New York and outgrowing their current space. With two and a half years left on their lease, they needed to negotiate out of their current lease and secure larger accommodations in line with both the specific technical needs of the firm and a brand identity synonymous with excellence.
Patek’s challenge was to create a dual use space: an upgraded and modernized office facility worthy of being the corporate face of the brand, and a state of the art repair facility complete with a customized air purification system. In addition to finding a space that met the different but aligned needs of both uses, they needed to negotiate out of their current rental obligation.
After considering multiple locations and options, including bifurcating the operation into two buildings, we identified space at 45 Rockefeller Plaza. This space was the needle in the haystack—half the space perfectly suited the corporate office need with views of the skating rink in Rock Center and St. Patrick’s Cathedral, while the other half looks onto a much less valuable side-street.
For the repair facility, we worked with Patek’s architects and engineers to achieve an installation specific to Patek Philippe’s vision and requirements. This included the building and Landmarks approving installation of a stand-alone HVAC and air purification system that rendered the watch servicing area over 90% dust free, and having the floors reinforced to increase the floor load capacity so Patek could house 4 heavy safes. With respect to the corporate office segment, few can argue the grandeur of looking out at the skating rink from a beautifully designed new floor.
Overall, negotiations resulted in above-market concessions on the new deal including free rent and a TI package well beyond anyone’s initial expectations. Lastly, we negotiated aggressive and favorable terms that released Patek from their current rental obligation.
Given all the details of this transaction, it took over a year to complete; in the end, Patek Philippe had that needle in the haystack, with a servicing area reminiscent of a James Bond laboratory and a corporate office aligned to their esteemed brand identity.