Target hits bull’s eye with Chelsea retail, office lease

Retail juggernaut Target has secured a 10-year, 24,000-square-foot lease on the second floor of 521 West 25th Street, Crain’s reported.

The big box retailer also nabbed a 5,000-square-foot ground floor retail space in a neighboring property at 511 West 25th Street, between 10th and 11th avenues. Both properties are owned by the Related Companies.

The office space at 521 West 25th will be used for creative and marketing staff, while Target plans to use the retail area for events and new product exhibitions.

Asking rent for the second floor office space was in the $60s per square foot, while the retail space went for around $115 per square foot. CBRE’s Paul Amrich and Ross Zimbalist represented Related, which leased 46,000 square feet at its Hudson Yards megaproject for a new Fairway Market last week.

“Target wanted to put its creative staff in the most creative neighborhood in the city,” Amrich told Crain’s.

The four-story structure is one of three contiguous buildings that Related owns on the block.

Target unveiled its first Manhattan store in 2010, then partnered with local developers to purchase an old U.S. Postal Service site in the Bronx back in 2011.[Crain’s] — Julie Strickland