Lululemon in talks for one-year lease at Thor’s 597 Fifth Avenue

Sephora left the space in March

May.May 22, 2017 06:35 PM

597 Fifth Avenue (inset: Joseph Sitt)

Lululemon Athletica is in talks to take 8,000 square feet at Thor Equities’ 597 Fifth Avenue.

The athletic apparel company is considering a one-year lease in Sephora’s old space, Bloomberg reported. Thor, which purchased the 12-story building in 2011 for $108.5 million, has struggled to fill the space since the makeup store left in March. A potential deal with Godiva recently fell through.

Thor TRData LogoTINY, which is led by Joseph Sitt, has quietly been shopping the building, along with 530 and 590 Fifth Avenue. Vacancies at the properties, however, could push Sitt toward defaulting on his loans, Crain’s reported in March.

Manhattan is in the middle of a retail slowdown as availability rates rise dramatically in some of the city’s busiest shopping centers. The availability rate on Fifth Avenue between 42nd and 49th streets, for example, hit 32.8 percent in the first quarter of 2017, according to data from Cushman & Wakefield. During an event last month, developer Billy Macklowe didn’t mince words when describing the retail market: “I think retail is fucked, plain and simple,” he said. [Bloomberg] — Kathryn Brenzel

(To view more retail leasing transactions completed by Thor Equities in Manhattan, click here)

Related Articles

Knotel CEO Amol Sarva 

Another huge round of layoffs for Knotel

Miki Naftali, Steven Witkoff and Ryan Freedman

TRD Talks: How developers are contending with coronavirus

Governor Andrew Cuomo (Photo by Spencer Platt/Getty Images; iStock)

Cuomo’s foreclosure, mortgage moratorium has no teeth

From left: Realogy's Ryan Schneider, Cushman & Wakefield's Brett White and Newmark Knight Frank's Barry Gosin (Credit: iStock)

Brokerage stocks plunge amid market turmoil

Mayor Bill de Blasio halted ULURP, stalling projects like 960 Franklin Avenue, Rikers Island and Industry City 

These projects could be held up by New York’s rezoning freeze

Eric Garcetti orders a moratorium on LA commercial evictions (Photo credit: iStock photo)

LA mayor orders a moratorium on commercial evictions

Mayor Bill de Blasio and Westchester Square Hospital in the Bronx (Credit: Lev Radin/Pacific Press/LightRocket via Getty Images; Google Maps)

New York City seeking sites for coronavirus triage centers

Georgetown president and CEO Adam Flatto and an aerial of 260 12th Avenue (Credit: Patrick McMullan/Patrick McMullan via Getty Images; Google Maps)

Georgetown plans 1.1M sf Hudson Yards office building