When the Related Companies, Apollo Development, and the City of New York announced a 2.1 million square foot mixed-use development on the site of the old Coliseum at Columbus Circle, it was hailed as a vision of modern design and a fitting home for one of the world’s largest multimedia conglomerates.
One aspect of the project in particular has succeeded in ways that most New York retail real estate professionals would not have expected. The Shops at Columbus Circle as the retail component of the project is being called is 95 percent leased, with a tenant roster that even Rodeo Drive would envy. There will be six levels of retail space all told, two of them below ground.
But will New Yorkers actually shop there? The project has a stellar roster of shopping and dining tenants. But it is certainly no secret that historically, vertical retail has fared poorly in New York Trump Tower and Manhattan Mall are prime examples of how difficult it is to get New Yorkers to move off the street to shop in a multi-level setting. Vertical retail is an obscure concept to the New York shopping populace, who are more accustomed to doing their shopping while strolling along an urban streetscape.
Presumably the center will get built-in foot traffic from the hotel, condos, and office space above. But the area around Columbus Circle has little pedestrian traffic. Furthermore, it’s possible that many of the high-end retailers like Hugo Boss, Tourneau, Armani and Coach that are tenants at The Shops may not appeal to the typical Upper West Side resident. However, several big-box retailers who are part of the diverse mix of tenants in the 300,000 square foot retail component seem a natural fit for the area. Borders Books, Whole Foods Market, and a 40,000-square foot Equinox gym, who are taking space, all seem promising. Borders, a well-run outfit, will face competition from Barnes & Nobles on Broadway and 68th Street, eight blocks away.
Another aspect of the retail component will be restaurants. Haute cuisine has committed to the project, with notable operators like Grey Kunz, Jean-Georges Vongerichten and Thomas Keller all planning to open restaurants on the third and fourth floors of the retail component. Hopes are high that people eating at the restaurant will also end up shopping at Hugo Boss and other retailers on the floors below.
Both Related and Apollo are confident that The Shops at Columbus Circle will buck the trend of how vertical retail has fared in New York. In addition to the location, density and vibrant nature of the project itself, the unique architecture featuring a 180-foot tall soaring glass façde facing out onto Columbus Circle will dramatically showcase the multitude of retailers to passers-by.
Will New York’s notoriously finicky shoppers break with tradition, modify their shopping habits and seek out the destination retailers that have committed to the Shops at Columbus Circle? A long list of highly respected national brands and a group of creative, committed developers are convinced they will.
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Mr. Mendelson is Executive Managing Director of Insignia/ESG Inc. and has been instrumental in completing some of the most important retail transactions in Manhattan.