On Leased New Office Space at Penn 1
The sportswear brand secured a 15-year lease for 85,000 square feet at 1 Pennsylvania Plaza in Manhattan.
Updated on Sept. 23, 2026 in Commercial
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Sportswear company On has leased 85,000 square feet of office space at 1 Pennsylvania Plaza in New York City. The 15-year agreement covers parts of the seventh and eighth floors, including an outdoor terrace space.
Why it matters
The expansion reflects the company's significant growth in the athletic apparel market, underscored by its recent financial performance. The firm is currently negotiating additional retail space at 767 Fifth Avenue to further bolster its New York presence.
The lease encompasses 61,000 square feet on the eighth floor and 24,000 square feet on the seventh, with an asking rent of $120 per square foot. On reported $1 billion in sales and a $676 million gross profit in the second quarter of 2026.
The players
On
This Swiss athletic footwear and apparel company was founded in 2010 and maintains a global brand presence.
Vornado
Vornado is a major real estate investment trust that owns and operates office and retail properties in New York City.
Kylian Mbappé
Kylian Mbappé is a professional footballer who joined the company as a global brand ambassador in 2026.
Roger Federer
Roger Federer is a retired professional tennis player who became a shareholder in the footwear company in 2019.
CBRE
CBRE is a global commercial real estate services and investment firm that represented the tenant in this transaction.
The details
A CBRE team represented On in the transaction, while a Vornado in-house team represented the landlord. The expansion comes after the company previously operated out of 165 Mercer Street.
Timeline
2010: On was founded in the Swiss Alps.
September 2021: On went public on the NYSE.
Q2 2026: On generated $1 billion in sales.
Mid-September 2026: Kylian Mbappé became a global ambassador for the company.
September 23, 2026: The lease agreement at Penn 1 was reported.
Culture Shift
This move highlights the broader shift as major athletic brands transition from boutique spaces to large-scale urban corporate headquarters. It aligns with a trend of companies prioritizing flagship office locations in major metropolitan hubs to solidify their brand presence.
The move signifies an increased corporate footprint for the brand in Manhattan, which may influence local retail availability and commercial real estate pricing in the Penn Plaza area. Commuters and local office workers can expect a greater presence of the company as it scales its operations.
The takeaway
The company's expansion highlights its rapid transition from a specialized Swiss startup to a global powerhouse. Readers should note that significant retail and office movements by such brands often serve as indicators of growth and increased local brand investment.
Further reading
For more on local market activity, visit Commercial.
Source note: This article includes information reported by Commercial Observer.
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