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New York City, New York | September 25, 2026: Swiss running brand On is expanding its New York office presence by leasing space at Penn 1, Vornado Realty Trust's renovated office tower directly connected to the Penn Station transit hub.
The move adds another occupier to Vornado's repositioned Penn District portfolio and highlights the importance of transit-connected, upgraded office buildings as companies reassess their Manhattan workplaces.
On Moves Into Vornado's Penn 1
On, the Swiss running shoe company, is relocating its New York office to Penn 1, according to CoStar.
The building is part of Vornado Realty Trust's Penn District campus in Midtown Manhattan and sits directly adjacent to Penn Station and Madison Square Garden.
The lease expands On's presence in New York as the company continues to grow.
Penn 1 Has Been Through a Major Upgrade
The lease comes after Vornado invested in the repositioning of Penn 1, including a redesigned lobby and extensive tenant amenity offerings.
Vornado has previously described Penn 1 as a major component of its broader Penn District redevelopment strategy, with the building's new lobby and multi-floor amenities designed around the needs of modern office tenants.
The property is a large-scale Manhattan office asset with more than 2.5 million sq ft of floor area.
Penn Station Connectivity Is a Key Advantage
One of Penn 1's most significant property features is its direct connection to Penn Station, giving office tenants access to one of Manhattan's most important transportation hubs.
The surrounding Penn District also includes the Moynihan Train Hall and expanded Long Island Rail Road concourse infrastructure, strengthening the area's role as a transit-oriented commercial district.
For office occupiers, proximity to regional rail and subway connections can be particularly relevant when companies evaluate employee commuting and workplace accessibility.
Why This Matters for Manhattan Office Real Estate
On's move provides another example of a growing company choosing an upgraded, transit-connected office property rather than simply leaving Manhattan.
For landlords, the transaction highlights the importance of combining traditional office space with amenities and accessibility as tenants reassess their workplace requirements.
For companies evaluating Manhattan offices, factors such as:
- Transit access
- Building amenities
- Renovated common areas
- Employee accessibility
- Location within established business districts
can influence leasing decisions alongside rent and space requirements.
Penn 1 Is Part of a Larger Penn District Strategy
Vornado has been repositioning its properties around Penn Station as part of the broader Penn District.
The company has described the area as a large, multi-building campus and has invested in office, retail, transportation and public-realm improvements.
The broader district includes Penn 1, Penn 2, Penn 11 and the Farley Building, alongside the Moynihan Train Hall and Penn Station infrastructure.
What Happens Next
On's relocation adds another corporate occupier to Vornado's upgraded Penn 1 as the company expands its New York office footprint.
For the Manhattan office market, the deal adds to the evidence that renovated buildings with strong transit connections continue to compete for tenants seeking accessible workplaces.
The broader performance of Penn 1 and the surrounding Penn District will depend on future leasing activity, tenant demand and the continued evolution of the West Midtown office market.