DKNY signs 10-year lease for 144,000 s/f in Garment District.

Colliers ABR, Inc. announced that The Donna Karan Company LLC, the fashion label of designer Donna Karan and a unit of LVMH Moet Hennessy Louis Vuitton SA, has signed a new 10-year lease covering 143,800 s/f with a five-year extension option at 240 West 40th Street.

The Donna Karan Company, which already had a major presence in the building as well as in other buildings in the area, decided to commit long term to the building and expand their occupancy to the entire office portion of the property.

This commitment is a result of a strategic plan to rationalize their occupancy in the area and create a co-terminus expiration date for all of their leases.

It was almost two years ago that DKNY accomplished a similar transaction involving their headquarters space of 50,000 s/f at 550 Seventh Avenue.

Mark P. Boisi, chairman, Colliers ABR, Nicola Heryet, senior managing director, Colliers ABR, and Peter Buckey, director, Colliers ABR, represented Donna Karan Company in the transaction. "The market is currently overheated, and we expect that it will continue to accelerate.

"We believe rents will increase in the area, due to lack of new office supply and the revitalization of the neighborhood with the recent completion of the new New York Times building across the street," said Mark P. Boisi. "The Donna Karan Company did not want to be forced to move out of the Garment District upon their lease expiration in two years due to rising rents and a lack of availability of large blocks of space.

"We were pleased to negotiate a lease that allowed the Donna Karan Company to commit now and secure their occupancy for the long term."

The Donna Karan Company will use the space at 240 West 40th Street for offices, showroom and design. The company headquarters are located nearby at 550 Seventh Avenue.