Retailers seize low rent opportunities in NYC

TRD New York /
Sep.September 01, 2009 12:30 PM
If you are a national or international retailer, it is your objective to operate a retail store in New York City, with Manhattan remaining the prize location. And in the down market, more national chains are capitalizing on lower rents.

On July 31, Texas-based J.C. Penney opened its first Manhattan location at the Manhattan Mall. Later this year, residents of Manhattan will no longer have to travel to Astoria or Brooklyn to shop at Costco Warehouse Club. Costco is scheduled to open its long-awaited store in East Harlem at 116th Street at East River Plaza.
Joining Costco there is the inaugural location for Target.

Downtown, it’s finally official — Seattle-based Nordstrom announced it signed a lease to open a 32,136-square-foot Nordstrom Rack, the company’s off-price retail division. The store will be located at One Union Square on 14th Street. Shoppers will have to wait until spring 2010 for its grand opening.

In a Queens location that was slated to serve as New York City’s first Wal-Mart is the Rego Park II, Vornado Realty Trust’s 600,000-square-foot retail complex. The center will be anchored by a 134,000-square-foot Century 21 store, a 138,000-square-foot Home Depot and a 132,000-square-foot Kohl’s. Wisconsin-based Kohl’s operates 1,022 stores in 49 states and is scouting for locations in Manhattan. According to Reuters, the company has been looking for space in Union Square, the Ladies Mile and West 57th Street.

Later this year the second BJ’s Wholesale Club will be opening in the Bronx. BJ’s clubs are presently located in the Bronx, Queens and Brooklyn. Industry leaders believe that the wholesale club, with over 180 locations in 15 states, is scouting locations in all the boroughs, with particular interest in Manhattan. In November, BJ’s will be opening a 121,000-square-foot club at the shopping center at Sky View Parc on College Point Boulevard in Flushing. It will join Bed Bath & Beyond, Best Buy and another Target in the 800,000-square-foot shopping center.

As retail rents continue to decline in Manhattan and the other boroughs, expect to see retailers scouting for locations in the best urban market in the world, New York City.

Michael Stoler is a columnist for The Real Deal and host of real estate programs “The Stoler Report” and “Building New York” on CUNY TV and on WEGTV in East Hampton. His radio show, “The Michael Stoler Real Estate Report,” airs on 1010 WINS on Saturdays and Sundays. Stoler is a director at Madison Realty Capital as well as an adjunct professor at NYU Real Estate Institute, and a former contributing editor and columnist for the New York Sun.


Related Articles

arrow_forward_ios
As shopping habits shift toward the digital, some property owners think demanding a portion of retail tenants’ online sales is only fair. (iStock)

Landlords eye taking cut of retailers’ online sales as rent

Landlords eye taking cut of retailers’ online sales as rent
(Getty, iStock)

“25% is a starting point”: Indoor dining returns to NYC today

“25% is a starting point”: Indoor dining returns to NYC today
Neiman Marcus at Hudson Yards and Geoffroy van Raemdonck (Getty)

Neiman Marcus exits bankruptcy $4B lighter

Neiman Marcus exits bankruptcy $4B lighter
A photo illustration of Mayor Bill de Blasio at a restaurant (Getty)

NYC’s outdoor dining program will become permanent

NYC’s outdoor dining program will become permanent
731 Lexington Avenue and 410 East 61st Street (inset) with Vornado's Steve Roth (Googel Maps; VNO)

Home Depot eyes former Bed Bath & Beyond space on First Ave

Home Depot eyes former Bed Bath & Beyond space on First Ave
CEO Mark Tritton and 410 East 61st Street (Getty, Google Maps)

Bed Bath & Beyond will permanently close UES store

Bed Bath & Beyond will permanently close UES store
Councilwoman Carlina Rivera (Getty, iStock)

City Council extends restaurant, retailer lease protections

City Council extends restaurant, retailer lease protections
Burlington CEO Michael Sullivan and 2163 Tilden Avenue (Burlington via Facebook; Google Maps)

Burlington Coat Factory inks big lease in Brooklyn

Burlington Coat Factory inks big lease in Brooklyn
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...