Hershey Company is upgrading from its fun-sized Times Square location.
The candy giant plans to open a new flagship store at the base of the 20 Times Square development, a spot that will triple its current 2,200-square-foot presence at Times Square, the Wall Street Journal reported. The new location will be a block away from the company’s rival, Mars Inc.’s M&M World.
The Times Square project is being developed by the Witkoff Group [TRData], Howard Lorber’s Vector Group, Ian Schrager, Winthrop Realty Trust and Maefield Development. The project, which includes a 452-key Marriott Edition hotel, will feature 76,000 square feet of retail space and an 18,000 square foot LED sign. The 39-story building is expected to be completed in 2017.
Other tenants include the National Football League, which plans to open a 40,000-square-foot permanent exhibit in the space, which would include a 350-seat theater. Cirque du Soleil is also taking space at the new building.
Asking rents in Times Square fell from $2,508 in the second quarter of 2015 to $2,109 in the second quarter of this year, according to data from Cushman & Wakefield. Brokers, however, told the Journal that retail rates in Times Square are quickly rising and prices are stabilizing.
Construction on the Hershey space will begin next year, during which time the old location will remain open. Avison Young represented Hershey in the deal and a CBRE team represented the landlord. [WSJ] — Kathryn Brenzel