Macy’s new skyscraper missing one key thing

Retailer needs politicians to rezone site for its 1.5M sf project

Feb.February 14, 2020 02:20 PM
Macy’s Herald Square (Credit: iStock)

Macy’s Herald Square (Credit: iStock)

Could real estate development be any harder than retail these days?

Macy’s is about to find out.

Macy’s is planning to tack on 1.5 million square feet of office space to its famous Herald Square location in Midtown Manhattan. But the troubled retailer, which recently announced a restructuring plan, could be facing an uphill battle, Bloomberg reported.

That’s because the proposed 800-foot-tall office tower would need a rezoning — a notoriously complex, often political process that can stall or stop the best laid plans.

“It could take years to get it to final conclusion,” City Council member Keith Powers told Bloomberg.

Plans for the project came to light in April 2019, when Bloomberg reported that the 161-year-old department store had held talks about the office tower with New York City officials.

Macy’s, which like many department-store chains has been struggling with declining sales, earlier this month said it plans to shut 125 of its weakest stores — a fifth of its portfolio — and slash 2,000 jobs. The retailer also said it would test a new strategy of having smaller stores in strip malls.

These moves, coupled with its proposed office skyscraper, are expected to lead to $1.5 billion in savings a year through 2022. [Bloomberg] — Mary Diduch 

Related Articles

(Credit: iStock)

NY restaurants, hotels warn of mass layoffs as US sees record jobless claims

The lifeline would allow the company to continue operating while it puts together a recovery plan. (Photo by Noam Galai/Getty Images)

Neiman Marcus in talks about possible bankruptcy: report

Robert Taubman and David Simon (Credit: Donato Sardella/Getty Images, Mireya Acierto/Getty Images, iStock)

With malls shut, what happens to Simon and Taubman’s deal?

Subway sent its landlords a “force majeure” letter last week (Photo by Mikko Robles/NurPhoto via Getty Images)

Major US retailers tell landlords they can’t pay rent

Workers board up the Time Square Sephora location (Credit: Liao Pan/China News Service via Getty Images)

NYC storefronts begin boarding up as virus empties streets

(Credit: iStock)

Retailers tell landlords they could stop paying rent soon

Scott Gerber pictured with Irvington Bar & Restaurant (Credit: iStock, Google Maps)

Hospitality company behind The Campbell, Mr. Purple lays off 400

Nordstrom is the latest retailer to close its stores across the U.S. and Canada for two weeks to prevent the spread of COVID-19 (Credit: Jeffrey Greenberg/Universal Images Group via Getty Images)

Nordstrom shutters stores in response to coronavirus