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New retail paradigm at Hudson Yards, says Related’s Himmel

Retail rents at Hudson Yards will reach $650 per sf

Neiman Marcus is coming to Hudson Yards, but it won’t be greeting visitors on their way in.

The luxury retailer, along with others high-end brands, will be concentrated on the top floors of the 750,000 square foot retail complex being developed by Related Urban, Related Companies’ mixed-use arm. “We sort of changed the whole paradigm,” president and CEO Kenneth Himmel told the New York Times.

Himmel said the retail complex will have six levels, with Neiman concentrated on levels five and six. Each floor place will be 150,000 square feet.

The Related executive told The Times that retail rents will be lower than Madison and Fifth Avenue.

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“Our most expensive floor is predictably our plaza level, which is our ground level,” Himmel said. “Rents there are in the average of $500 to $650 a square foot. That’s just retail. Restaurants are much lower. And the rents move down as you go up.”

Neiman Marcus is the only brand Himmel confirmed will open at Hudson Yards. He said his company was in talks with “probably 100” retailers, and would likely make more announcements in October, when Related closes its loan.

The lower floors will be occupied by the kind of retail brands “you see on Fifth Avenue,” Himmel said. He listed H&M, Zara, Nike and Sephora. Luxury brands like Coach, Chanel, Ferragamos and Louis Vuitton are also being courted for space on upper-level floors.

The retail space is only part of the mix at Hudson Yards. Seven destination restaurants spanning about 75,000 square feet are planned for the complex. Thomas Keller, of Per Se and The French Laundry, will be opening an American grill-styled restaurant.

Himmel said the project is close to schedule and should open in fall of 2018. [NYT] – Ariel Stulberg

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