Aeropostale to leave Times Square flagship after bankruptcy

Clothing retailer giving back 19K sf space at SL Green's 1515 Broadway

New York /
May.May 06, 2016 09:05 AM

Clothing retailer Aeropostale will close its Times Square flagship store after filing for bankruptcy this week, giving back around 19,000 square feet of Prime Broadway retail space to landlord SL Green Realty.

The store at the base of 1515 Broadway, a 54-story office tower between West 44th and West 45th streets, is one of 154 locations in the U.S. and Canada that Aeropostale will shutter after filing for Chapter 11 bankruptcy protection Wednesday.

It is not yet clear when the retailer will vacate the Times Square space and whether it will pay SL Green a penalty or termination fee to do so, according to Crain’s. But Aeropostale’s departure will give the real estate investment trust a sizable vacancy in the high-traffic Times Square shopping corridor, where retail rents have escalated as high as $2,000 per square foot for prime space.

In addition to 1515 Broadway, Aeropostale will also close its Downtown Brooklyn store, at 472-474 Fulton Street. U.S. store closures are set to begin May 7, with Canadian stores shuttering starting May 9.

According to Crain’s, the upcoming vacancy at Aeropostale’s Times Square store adds to an ever-increasing inventory of retail space both in the neighborhood and Manhattan at large – with rising rents, in particular, starting to hurt retailers.

Clothing store Express, for instance, is rumored to be considering subleasing its 30,000-square-foot retail flagship at 1552 Broadway – a location it reportedly pays north of $20 million for annually.

“The high-value corridors like Times Square, Broadway in Soho, the Meatpacking District and Madison Avenue have all seen rents rise to a level where it curtails demand,” according to Cushman & Wakefield vice chair Gene Spiegelman, who oversees the brokerage’s national retail leasing operation. “Retailers want to be here, but you need equilibrium back.” [Crain’s]Rey Mashayekhi


Related Articles

arrow_forward_ios
Clockwise from top left: 312 West 34th Street, 61 North 9th Street, 639 Classon Avenue, and One Fulton Square (Credit: Google Maps)
These were the top 10 NYC retail leases in July
These were the top 10 NYC retail leases in July
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)
SL Green puts Daily News building up for sale
SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt
SL Green snags private-equity firm at One Vanderbilt
SL Green snags private-equity firm at One Vanderbilt
Top Rock's Uri Mermelstein and Joseph Yushuvayev with 609 Fifth Avenue (LinkedIn, SL Green Realty)
Top Rock revealed as buyer of former Fifth Ave WeWork for $100M
Top Rock revealed as buyer of former Fifth Ave WeWork for $100M
Rethinking the ground lease
Rethinking the ground lease
Rethinking the ground lease
SL Green's Harrison Sitomer and 609 Fifth Avenue in Manhattan (SL Green, iStock)
SL Green sells Fifth Ave office condo for $100M
SL Green sells Fifth Ave office condo for $100M
HNA Group's Guoqing Chen (left), SL Green CEO Marc Holliday (right), and 245 Park Avenue (SL Green, World Travel & Tourism Council - via Wikimedia Commons, LoopNet)
HNA must pay SL Green fat sum over 245 Park Avenue
HNA must pay SL Green fat sum over 245 Park Avenue
1552-1560 Broadway and Wharton Properties’ Jeff Sutton (Google Maps)
Investor claims Jeff Sutton cheated him out of millions on Times Square deal
Investor claims Jeff Sutton cheated him out of millions on Times Square deal
arrow_forward_ios

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

Loading...