Prime cut (of real estate): How meatpackers persist in the Meatpacking District

EDC compromise helped remaining industry score rents at $19 psf

New York /
Nov.November 16, 2015 04:38 PM

You might not have known it, but among the high-end retail storefronts and trendy nightclubs and restaurants, there are still some meatpackers left in the Meatpacking District.

In fact, the Meatpacking District itself is the last holdout among the many marketplaces that once flourished in Manhattan – with the Fulton Fish Market having decamped to the Bronx in 2005, wholesalers having withered from the Flower District on West 28th Street and the Printing District at Hudson Square all out of ink.

The last Downtown meatpackers, however, are hanging in there, according to Crain’s. Seven firms employ around 120 people huddled in an 80,000-square-foot building located underneath the southern edge of the High Line.

It’s a far cry from the district’s heyday in the 1950s, when it housed 200 companies employing 3,000 butchers and wholesalers from stretching south from 14th to Horatio Streets And From Ninth Avenue west to the Hudson River.

The remaining meatpackers in the Meatpacking District collectively take in around $250 million in revenue, which is miniscule compared with $5 billion in sales at the massive Hunts Point marketplace in the Bronx that is home to the city’s largest distributors.

But the boutique downtown meat market endures, thanks in part to logistic challenges that make it difficult for trucks from outside the borough to beat the traffic and make deliveries in Manhattan.

The industry can also thank the power of compromise, with the meatpackers – who have functioned as a co-op since 1974 – ceding part of their space to the Economic Development Corp. in 2012 to make way for the new Whiney Museum of American Art on Gansevoort Street.

In return, the city extended their lease 2032 – with the meatpackers paying only about $18.75 per square foot for their location, according to the EDC. That’s astonishingly low when considering that average asking retail rent in the Meatpacking District is $372 per square foot. [Crain’s]Rey Mashayekhi


Related Articles

arrow_forward_ios
Economic Development Corporation CEO James Patchett (Getty; iStock)

EDC’s $58M in Times Square rent mostly sunk into ferries

EDC’s $58M in Times Square rent mostly sunk into ferries
The Metropolitan Museum of Art and The American Museum of Natural History (Photos by Rob Kim/Getty Images)

Museums get green light to reopen in New York City

Museums get green light to reopen in New York City
The Metropolitan Museum of Art and the American Museum of Natural History have set reopening dates for this month or next (Getty)

Museums, still in limbo, plan reopenings

Museums, still in limbo, plan reopenings
Delshah Capital's Michael Shah, 58-60 Ninth Avenue and Urban Outfitters CEO Richard Hayne (Google Maps)

Delshah sues retailer Free People for $11M after terminating Meatpacking lease

Delshah sues retailer Free People for $11M after terminating Meatpacking lease
Congresswoman Nydia Velázquez, Congressman Jerry Nadler and Council Member Carlos Menchaca (Credit: Getty Images, Google Maps)

Pols pounce as city caves in on Sunset Park property

Pols pounce as city caves in on Sunset Park property
Liberty View Plaza at 850 3rd Avenue and Marvin Schein (inset) (Photo by Axel Dupeux)

City lets industrial landlord off the hook in Sunset Park

City lets industrial landlord off the hook in Sunset Park
Epstein's Mansion at 9 East 71st Street and the Frick Museum at 1 East 70th Street with Jeffrey Epstein (Credit: Getty Images, Google Maps, Wikipedia)

Preservationists want the Frick to buy Epstein’s old mansion

Preservationists want the Frick to buy Epstein’s old mansion
29 Ninth Avenue (Credit: Google Maps and iStock)

Rolex gliding into the Meatpacking District

Rolex gliding into the Meatpacking District
arrow_forward_ios

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

Loading...