The Real Deal New York

IKEA to open its first Manhattan outpost

The Swedish furniture giant will move into Zucker Organization's 999 Third Avenue
By David Jeans | December 03, 2018 01:31PM

999 Third Avenue (Credit: Google Maps)

IKEA is set to nestle into its first Manhattan space, announcing that it will open a concept store in Lenox Hill.

The Swedish furniture store will take over retail space at 999 Third Avenue, according to a release from the company. It wasn’t immediately clear how much square footage IKEA would occupy in the Zucker Organization-owned property.

Last year, the landlord was marketing the three-story, 17,500-square-foot retail portion at the Lenox Hill tower as individual lots, after Urban Outfitters exited the building. Asking rents at the time were reportedly $300 per square foot for the ground floor, the second floor for $125 per foot and the lower level at $65 per foot.

IKEA’s new space, which is smaller than its traditional warehouse style stores, will focus on providing products for urban living and small living spaces akin to New York City. Rather than having customers pick up products at the store, purchases will be delivered. The store will open in spring 2019.

“To be fit for long-term growth, IKEA is transforming in a way that lets us meet our customers where they are,” Lars Petersson, manager for IKEA Retail U.S., said in a statement.

The company added that it expects to open 30 of its “Planning Studio” concept stores in city centers over the next three years.

In January, IKEA signed a long-term lease for 975,000 square feet of warehouse space at the Matrix Global Logistics Park in Staten Island.