Under Armour to sublease planned Fifth Avenue flagship

Cushman is marketing 24K sf to sublet

New York /
Mar.March 15, 2021 04:00 PM
Under Armour CEO Patrik Frisk and the GM Building (Getty, Google Maps, Cushman & Wakefield)

Under Armour CEO Patrik Frisk and the GM Building (Getty, Google Maps, Cushman & Wakefield)

It wasn’t so long ago that the sportswear brand Under Armour had big plans for a flagship store in the former FAO Schwarz at 767 Fifth Avenue.

But more than two years ago, Under Armour pushed the store’s opening back to 2021. Now, it may not open in the General Motors Building at all.

The retailer is subleasing 24,403 square feet of its total 53,000 square feet of space between East 58th and 59th streets. According to a public brochure on Cushman & Wakefield’s website, the available lease term runs through 2035.

Under Armour and Boston Properties, the landlord of the GM building, did not immediately respond to requests for comment.

The former home of FAO Schwarz was coveted just five years ago, and was eyed by rival athletic brand Nike before Under Armour inked its deal.

But times have changed. Tourism numbers have fallen on the luxury corridor, hurting retailers in the short term; in the long term, the pandemic has led many to rethink the advantages of a huge flagship altogether.

And Under Armour was already reconsidering its Fifth Avenue digs before the pandemic took hold. The company was facing weak demand in North America and executives said it would focus more on smaller, more potentially profitable locations.

“The Fifth Avenue location is a premier retail location, but we’re considering whether it may be better suited for someone else at this time,” CFO Dave Bergman said at the time, according to Market Watch.

Subleasing has become more common for office tenants in recent months, and experts believe an uptick in retail subleasing may soon follow.

Other tenants in the GM Building are also turning toward subleasing. In the commercial space above, hedge fund firm York Capital Management is looking to cut about 40 percent of its offices, Bloomberg News first reported.





    Related Articles

    arrow_forward_ios
    SL Green's Marc Holliday and Daniel Boulud with One Madison Avenue (Getty, SL Green)
    Daniel Boulud lands at SL Green’s One Madison Avenue
    Daniel Boulud lands at SL Green’s One Madison Avenue
    (Getty)
    Strong November hiring reported in real estate industries
    Strong November hiring reported in real estate industries
    Rihanna with 8000 Mall Walk (Getty, Visit West Chester NY)
    Rihanna’s Savage X Fenty heads to Yonkers
    Rihanna’s Savage X Fenty heads to Yonkers
    Why real estate shoppers are bagging grocery-anchored plazas
    Why real estate shoppers are bagging grocery-anchored plazas
    Why real estate shoppers are bagging grocery-anchored plazas
    Macy’s CEO Jeff Gennette (Getty)
    Macy’s converts 1M sf to fulfillment space
    Macy’s converts 1M sf to fulfillment space
    (Photo Illustration by The Real Deal with Getty)
    Black Friday store traffic jumps, but sales don’t
    Black Friday store traffic jumps, but sales don’t
    (Illustration by The Real Deal with Getty)
    Retail real estate continues climb, reaches record low availability
    Retail real estate continues climb, reaches record low availability
    1 Wythe Avenue in Greenpoint, Brooklyn and Brooklyn Brewery CEO Eric Ottaway (Google Maps, Twitter/@EricOttaway)
    Brooklyn Brewery to expand in move to Greenpoint
    Brooklyn Brewery to expand in move to Greenpoint
    arrow_forward_ios

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

    Loading...