Barneys New York, a company famously synonymous with Midtown Manhattan, moved a small part of its operations to Long Island City. The department-store chain has signed a 10,000-square-foot manufacturing-space and office lease for its visual department at Plaxall Properties’ 5-25 46th Avenue, said Plaxall managing director Paula Kirby at the LIC Summit held at the Museum of the Moving Image Tuesday.
Asking rents at the three-story, roughly 46,000-square-foot commercial building, which houses the LIC Flea & Food market on the ground floor, are at $35 per square foot, according to Plaxall’s website.
The move further highlights the emergence of the outer boroughs as an office destination amid changing tenant demands and rising rents in Manhattan. Last year, Vice Media signed a 70,000-square foot lease in Williamsburg, while e-commerce firm Etsy committed to 169,000 square feet in Dumbo.
Long Island City, mostly known for its sprouting residential developments, also has a thriving office market, including the tallest office building of the outer boroughs at One Court Square. The neighborhood has recently seen growing investment in office buildings. Last November, Vornado Realty Trust agreed to buy the 437,000-square-foot Center Building at 33-00 Northern Boulevard for $142 million. Last June, RXR Realty bought the Standard Motors Building at 37-18 Northern Boulevard for $110 million.
Barneys New York’s flagship store is located at 550 Madison Avenue, and its headquarters is at 575 Fifth Avenue.