In New York, most of the industry’s design center drama has centered on Charles Cohen’s epic legal battles with his lenders, and what it might mean for the fate of the D&D Building. But around the corner on East 58th Street, questions are mounting over another Big Apple fixture: the Architects & Designers Building, better known as the A&D Building.

As reported by The Real Deal, in August of last year, the building’s owners—real estate giant Vornado, which also owns and operates the Merchandise Mart in Chicago—put it up for sale, hiring brokerage firm Eastdil Secured to sell the property. The reported asking price was $250 million or higher; in a marketing memo, Eastdil referred to the A&D as “an ideal candidate for a residential conversion or an office rebranding initiative.”

Almost a year later, there’s no news of a sale. However, for at least some showrooms, the state of limbo has started to impact their businesses. Vornado Realty Trust has decided not to renew some leases on a long-term basis—potentially a sign that the company is trying not to encumber the building with tenants that might impede an eventual deal.

Karen Williams, the owner of kitchen design company St. Charles New York, says that last summer, Vornado declined to renew her showroom lease, a space she had been in for decades. “They said the building is being marketed for sale, and they were not going to extend it,” she says. “We were very surprised. I’ve never been in a house, apartment or relationship as long as I was in that showroom.” Williams has since moved out.

The state of play has led to rumors swirling in the building: There are whispers that Vornado is courting at least one buyer who wants to fast-track a residential conversion. Talk to others and you’ll hear that the company has paused the sale process and intends to keep the A&D after all.

Vornado has never publicly confirmed that the A&D is for sale, though New York property records show that in March it internally transferred ownership of the building to a wholly owned subsidiary with a stated valuation of $240 million—a move that is consistent with packaging for a future sale. Neither Vornado nor Eastdil responded to a request for comment.

The A&D Building traces its history back to the 1960s, though it wasn’t acquired by Vornado until 1998. In its present-day incarnation, it is home to a range of high-end showrooms, many focused on the kitchen and bath category. Both B&B Italia and Holly Hunt have street-level showrooms, while upper floors are dedicated to office space—including Peter Marino’s headquarters.

Though the A&D is an institution in New York’s design scene, it’s not unthinkable that a new owner might have different plans for the building. In 2018, the nearby Interior Arts Building (home to Bunny Williams’s office, antiques gallery Newel and rug purveyor Doris Leslie Blau) was sold on the premise that it would be converted to medical offices. Ultimately, the buyer—J. Matthew Cassin, founder of development firm Acram Group (formerly JMC Holdings)—was swayed to keep it as is, after extensive consultation with the existing tenants.

The rumors that the A&D might be turned into an apartment building have been juiced by the 2024 passage of Section 467-m of the New York State Real Property Tax Law, a package of tax incentives that rewards developers for converting nonresidential spaces to residential ones. The law has led to a miniboom in Manhattan—according to a recent report by Ariel Property Advisors, 2.5 million square feet of office space was being converted as 2025 drew to a close.

However, residential conversions are complex undertakings. They require extensive construction—and just as importantly, what Ariel founder and president Shimon Shkury calls a “clear path to vacancy.”

“When you convert an office to residential, a big portion of the building needs to be vacant,” he says. “In some cases you will see that a big portion of the building is already vacant, and the rest of it is going to be vacant in a short period of time—call it 18 months.”

The status of the various leases at the A&D are difficult to assess. According to Vornado’s annual report to investors, the building was 80 percent occupied as of last December. Anecdotal evidence—recent investments in showroom renovations, casual conversations with executives—suggests that at least a handful of brands in the building have considerable time left on their leases.

Eastdil’s original memo also suggested the possibility of an “office rebranding initiative.” Shkury says that the action in Manhattan office space is mostly concentrated around the top tier, which is fueling a surge in upscaling projects—physical improvements to the building staged over time, leading to higher rents. “We’ve seen a lot of B-plus office assets that can be A-minus,” he says. “If you look at the highest demand for investments in office, it’s the Class A office buildings. … That’s where you see the majority of the investment.”

As the landscape of New York commercial real estate shifts, the way design brands invest in showroom space is changing too. Williams says she’s looking for a new home for St. Charles, likely on the Upper East Side. She’s hoping to find a balance between a showroom space and a design studio—an intimate location tricked out with digital tools, where clients can handle hardware and be immersed in their project. “Showrooms are always going to be important, but they’re definitely going to be redefined,” she says. “I think we’re suffering from a fatigue problem. There are too many choices, too many options, too many colors, and when you bring them into these large-scale showrooms, it’s just another overwhelming experience.”

Despite the distress of packing up her longtime A&D Building showroom, she has begun to appreciate the upsides. “Having this change thrust upon me turned into an opportunity, which I’m very excited about,” she adds. “But it wasn’t an easy one.”