HISTORY OF THE EMPIRE STATE BUILDING: A FINANCIAL FLOP FOR NEARLY 20 YEARS QUICKLIQUIDITY
In 1951 the Empire State Building was sold to Roger L. Stevens and his business partners for a
staggering $51 million. At the time, that was the highest price ever paid for a single building in real
estate history⁶.
In 2013, the owners of the Empire State Building combined it with
multiple other properties to become a public REIT under the name
the Empire State Realty Trust. The REIT is required to file annual
financials, allowing us to see how much the Empire State Building
makes from each of it’s different revenue streams. With the Empire
State Building offering 2.7 million square feet for lease, most
people would think it’s largest source of revenue would be from it’s
office space that would be incorrect. While the Empire State Building’s office space generated $104
million in revenue, it’s Observation Decks generated a whopping $111 million. In addition, the building
generated $20 million from licensing the use of it’s broadcasting mast to television and radio
broadcasters, and generated $9 million from the buildings retail space⁷.
The competition between Walter Chrysler, John J. Raskob, and the team behind 40 Wall Street to see
who could build the world’s tallest building pushed the status quo forward. Competition pressures us to
be the best we can, to face our fears and step outside of our comfort zone allowing us to unlock our full
potential. Competition has driven the human race forward since the dawn of time. Whether it was
Michelangelo vs. Leonardo da Vinci who inspired millions with their art, Nikola Tesla vs. Thomas Edison
who feuded over whose electricity would power the world or the United States vs. the Soviet Union’s
race to see who could be the first to put a man on the moon. Without competition we are idle and
stagnant, we don’t dream as big or fight as relentlessly. While the Chrysler Building and 40 Wall Street
may not have held the title of world’s tallest building for as long as its builders may have hoped, they
without a doubt succeeded in shaping history. Even though the Empire State Building was a financial
flop for nearly its first 20 years, it is undoubtedly one of the world’s most famous buildings. We should
not fear competition. We should embrace it. We should shoot for the stars – just like they did.
Sources
¹James Maher, Chrysler Building History and Photography, www.jamesmaherphotography.com
²Barbara Thau, Great Depression echo, www.therealdeal.com
³Evan Andrews, 10 Surprising Facts About the Empire State Building, www.history.com
⁴Michael Sandberg, Architecture: The Empire State Building, www.datavizblog.com
⁵Evan Andrews, 10 Surprising Facts About the Empire State Building, www.history.com
⁶www.paralumun.com
⁷John Maxfield, How the Empire State Building Makes Money (In One Chart), www.fool.com