Case Study: Rent the Runway achieves an off-market 7‑year Hudson Square lease and >25% rent savings with Cresa

Discovering Shadow Space in a Tight Submarket

Rent the Runway (RTR), an online service that rents designer women’s clothing, was rapidly outgrowing its small Hudson Square footprint at 163 Varick Street and faced an impending lease expiration in a highly constrained submarket. RTR engaged Cresa for tenant representation and real estate advisory services to model five‑year headcount and growth needs, identify incentive opportunities, and develop a relocation/expansion strategy while staying in Hudson Square.

Cresa leveraged market relationships to uncover a 39,848 RSF sublease at 345 Hudson Street before it hit the market, negotiated on RTR’s behalf, and closed terms ahead of competing tenants. Cresa secured a new seven‑year deal that was $18.00 RSF less than the prior building deal and more than 25% below comparable transactions, with structured free‑rent concessions that kept the remaining two years of existing lease payments largely unchanged.

Rent the Runway

AJ Nicholas

Deputy General Manager