Philips International, The Future of the Empire State Building

If asked to name the most iconic buildings in our nation, chances are the Empire State Building is going to be in the top three somewhere. That is why in 2007 it was ranked number one on the AIA’s List of America’s Favorite Architecture. Not only is it a strong symbol for New York City, it is a national icon and until recently, the United States’ largest tower. Inside the building are more than one thousand commercial businesses, retail stores, broadcast stations, observation decks, and approximately 21,000 employees. There are two observation decks on the building, which generate more than $85 million annually with over 3.6 million tourist visits. In short, the Empire State Building is one of the most important structures in our nation and it embodies the strength and history of the American people.

But what about the future of the Empire State Building? Is the building, having been built during the Great Depression, now outdated and in the background? For some it may be. Originally the tower represented a largely blue-collar symbolism. The plaques in the building’s lobby read “Steel,” Plumbing,” and “Masonry.” Nowadays, it is mostly a white-collar place of business and tourism. With revenue from the millions of tourists visiting the observation decks every year, the potential for renting office space, and the historical significance of the building, the Empire State Building is a real estate developers dream come true. The building is currently owned by Empire State Realty Trust, of which Anthony Malkin serves as Chairman, CEO, and President. Recently, Malkin Holdings entertained the idea of passing ownership on to another, and this move had real estate developers in an uproar over who might make a bid.

Philips International, one of New Yorks leading real estate developers and property managers, decided to make a bid. Led by Owner, Founder and CEO, Philip Pilevsky the company recognized the potential that the building held for property leasing as well as its historical significance for the city. Having acquire, developed, and management multiple historic buildings in New York City, the real estate firm was excited at the opportunity to participate in the history of such an iconic building. In partnership with Joseph Tabak, Philip Pilevsky made a $2.1 billion dollar offer on the Empire State Building.

In the end, Malkin Holdings was unable to let go of the building and continues to own and manage it to this day. In the future, however, the Empire State Realty Trust will need to search for investors with a strong connection to New York City’s past.