On Leased 85,000 Square Feet at 1 Pennsylvania Plaza
The sportswear brand has committed to a 15-year lease in New York City.
Updated on Sept. 23, 2026 in Commercial
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Athletic footwear company On has signed a 15-year lease for 85,000 square feet of office space at 1 Pennsylvania Plaza in New York City. The expansion includes space across two floors and follows a period of strong financial performance for the Swiss company.
Why it matters
This move marks a significant expansion of the brand's footprint in New York City, signaling its continued growth in the competitive sportswear market. The decision reflects the company's solid financial standing, supported by $1 billion in sales during the second quarter of 2026.
The new office headquarters spans 61,000 square feet on the eighth floor and 24,000 square feet on the seventh floor, the latter of which features an outdoor terrace. The agreement is set for a 15-year term with an asking rent of $120 per square foot.
The players
On
A Swiss athletic footwear and apparel company known for its performance gear and high-profile brand ambassadors including Roger Federer.
Vornado
A major real estate investment trust and owner of significant commercial properties in New York City.
Kylian Mbappé
A professional soccer player and global ambassador for On who joined the brand in mid-September 2026.
CBRE
A global commercial real estate services firm that represented On in the negotiation of the new lease.
The details
The transaction was facilitated by CBRE, which represented the tenant, while Vornado's in-house team acted on behalf of the landlord. This expansion follows the company's reported $676 million gross profit in the second quarter of 2026 and comes as the brand continues to increase its market presence through high-profile partnerships, including its recent collaboration with Kylian Mbappé.
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.
September 2026: Kylian Mbappé became a global brand ambassador.
The Home Front
This lease expansion at 1 Pennsylvania Plaza highlights the continued demand for premium commercial space in New York City’s central business districts. The trend reflects a broader corporate focus on securing high-quality, amenity-rich environments to support long-term operational growth.
Local residents might notice increased activity or branding for the company around the Penn 1 area as the office transition occurs. Those tracking commercial property shifts can monitor the ongoing retail space negotiations at 767 Fifth Avenue for future updates on the brand's local footprint.
The takeaway
The company's investment in a 15-year lease at a prominent Midtown location signals significant confidence in its long-term growth trajectory. Investors and local observers can continue to track the brand's performance by reviewing quarterly financial statements and public growth projections.
Further reading
For more on the latest developments in local property usage, visit Commercial.
Source note: This article includes information reported by Commercial Observer.
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