Related marketing Neiman’s Hudson Yards store as office
Developer shifting to Plan B as anchor works through bankruptcy
With Neiman Marcus in bankruptcy, the Related Companies is marketing the department store’s space at the Hudson Yards mall to office tenants.
Related and co-developer Oxford Properties are marketing Neiman’s 190,000 square feet and other retail space as office use, according to Business Insider. In total, the developers put 380,000 square feet at the top of the mall — or roughly 40 percent of the shopping complex — on the market.
A representative for Related declined to comment to Business Insider and a spokesperson for Oxford did not respond.
The move is a remarkable change in strategy for Related and Oxford, which once considered the retail component to be the most valuable aspect of their $25 billion Hudson Yards megaproject.
The developers spent $80 million building out the store for Neiman, which they used as an anchor to lure other retail tenants. Related and Oxford developed the adjacent office towers and sold some of those spaces off at-cost, figuring they would drive value at the development by filling the office towers with workers who would shop at the mall.
But the city’s retail market had suffered in the years since Related and Oxford hashed out plans for the complex, and the coronavirus shut down has made matters worse.
Neiman filed for bankruptcy earlier last month. [Business Insider] – Rich Bockmann