On Leased 85,000 Square Feet at Penn 1

The athletic apparel company secured a 15-year lease for its new office headquarters in New York City.

Updated on Sept. 23, 2026 in Commercial

Bold vector editorial illustration showing a modern office interior with large glass windows and an architectural terrace, representing corporate office expansion. — On has signed a 15-year lease for an 85,000-square-foot office headquarters at 1 Pennsylvania Plaza, marking a significant expansion for the apparel company. AI Illustration. Upload story photo >

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On has finalized a 15-year agreement for 85,000 square feet of office space at 1 Pennsylvania Plaza in New York City. The expansion follows a strong financial quarter where the company reported $1 billion in sales.

Why it matters

This long-term commitment signals the company's continued growth in the competitive athletic apparel market. The expansion into a larger office footprint reflects the firm's recent financial gains, as it reported $676 million in gross profit for the second quarter of 2026.

The lease commands an asking rent of $120 per square foot for the combined 85,000-square-foot space. The firm currently manages its operations following a period of rapid expansion, reporting $1 billion in sales in the second quarter of 2026.

The players

An athletic footwear and apparel company that sells performance gear to consumers.

Vornado

A real estate investment trust that owns and manages commercial office space.

CBRE

A global commercial real estate services firm that represents tenants in leasing transactions.

Roger Federer

A retired professional tennis player and current shareholder of On.

Kylian Mbappé

A professional soccer player and global ambassador for On.

The details

The new headquarters occupies two floors, with 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. A CBRE team represented On in the transaction, while a Vornado in-house team represented the landlord. The firm is also currently negotiating a separate lease for retail space at 767 Fifth Avenue.

2010: On was founded in the Swiss Alps.
November 2019: Roger Federer became a shareholder of On.
July 2020: On released the Roger shoe.
September 2021: On went public on the NYSE.
Q2 2026: On generated $1 billion in sales.

Money Landscape

This move marks a significant physical expansion for the brand since its 2021 NYSE initial public offering. It follows a period of rapid scaling as the company transitions from a specialized footwear designer to a major global athletic apparel entity.

While this is a corporate headquarters move, shoppers may see the brand's continued growth reflected in potential new retail locations, including the site currently under negotiation at 767 Fifth Avenue. Consumers should track store announcements to see how these infrastructure investments impact local product availability.

The takeaway

The company continues to solidify its physical presence in New York City with a 15-year lease at Penn 1. Investors and consumers should monitor public corporate filings for updates on retail expansion plans and future quarterly earnings reports.