Coach reportedly may bag move to Hudson Yards
Poor sales reportedly has firm rethinking deal for 738,000 sf of office space
Coach could be packing its fancy leather bags before ever moving in to its new offices at Hudson Yards.
The first anchor tenant of 10 Hudson Yards is thinking about selling its space at 10 Hudson Yards. The upscale leather goods store is reportedly considering leasing the space back, rather than owning it, due to disappointing sales, according to the New York Post. The tower in the Related Companies and Oxford Properties-developed Hudson Yards on Manhattan’s Far West Side won’t be complete for a number of years.
At Hudson Yards, Coach, which is being represented by CBRE’s Mary Ann Tighe, agreed to buy 738,000 square feet of office space, with the option of buying two more floors, at $70 per square foot. Because Coach signed on early, it will receive a 40 percent property tax break.
Coach had demanded that Related not lease space to any of its competitors, including Polo Ralph Lauren Corp., J. Crew Group and Burberry Group. The developer agreed to this demand.
Coach also already announced it will be selling its office building at 516 West 34th Street to Related, according to the newspaper. Coach is currently also leasing office space at 450 West 33rd Street. [NYP, 1st] — Claire Moses