Big Box Stores Take Manhattan

Two newcomers brought their business – and big lease deals – to the Big Apple in 2024.

International retailers Primark and Hobby Lobby entered the Manhattan market for the first time and inked the borough’s two largest leases, despite an overall decline in the number of chain stores.

The top deals spanned more than 70,000 square feet each. The largest new lease was for Ireland-based fashion retailer Primark’s new 79,000 square-foot store in Herald Square. Next up was Oklahoma-based craft store Hobby Lobby’s new 71,000-square-foot lease in Tribeca.

Prices have leveled off after a spike before Covid, said Brian Katz of Katz & Associates, who represented Hobby Lobby in the lease negotiations. More large spaces have also come on the market in recent years, opening the door for chain stores to grab them at a good price.

“As things leveled out, there was an opportunity to identify and secure large-format boxes,” Katz said. “A lot of them were exploring it post-Covid and were able to find the right locations and the right deal structure to be able to make it happen.”

Landlords are holding their ground on lease terms, but rents remain 20 to 30 percent below pre-pandemic levels, according to a Real Estate Board of New York Manhattan retail report on the first half of the year. Leasing moved at different speeds, depending on location, size, and sector.

Demand is strong for small and mid-sized storefronts and larger ones are taking longer to lease, according to REBNY. A mix of local and new-to-the-market retailers are driving demand.

“I think it’s a great opportunity for companies to get in,” Katz said. “There were so many years when there just wasn’t that size space available and if it were available the deal structure just didn’t make financial sense.”

Below are Manhattan’s top 10 retail leases of 2024, ranked by square footage. All data are through November:

1. Primark | Herald Square | 79,000 square feet

Fashion retailer Primark grabbed the year’s largest retail lease. The Ireland-based chain is leasing 79,000 square feet at Vornado Realty Trust’s 150 West 34th Street in Herald Square. The company is poised to take over the space — which includes 54,000 square feet for a flagship store — next year, planning an opening in 2026. This will be the brand’s 11th store in New York state.

The asking rent for the property was $10 million. CBRE’s David LaPierre guided Primark through the lease negotiations.

2. Hobby Lobby | Tribeca | 71,000 square feet

Arts and crafts supply store Hobby Lobby inked a new lease at 270 Greenwich Street for its first space in Manhattan. The Oklahoma-based chain is taking 70,700 square feet on the second floor of the Edward J. Minskoff Equities building. Brian Katz and Daniel DePasquale of Katz & Associates represented the tenant, while a 3-member Ripco Real Estate team including Peter Ripka and Andrew Mandell represented the landlord.

3/4. Classic Car Club | Hell’s Kitchen | 60,000 square feet

Classic Car Club inked a new 20-year lease for a 60,000-square-foot flagship at a former car dealership at 645 Eleventh Avenue. The private automotive club, which was founded in London in 1995, will have car storage, coworking and meeting spaces and dining rooms across four floors of the Hell’s Kitchen property. Peter Gross of Avison Young represented the private tenant and a team from Ripco Real Estate represented the landlord, Bram Auto Group.

3/4. Whole Foods | Columbus Circle | 60,000 square feet

Whole Foods renewed the lease for its supermarket and cafe at 10 Columbus Circle. The organic grocer opened the 60,000-square-foot store in 2004 on the concourse level of Related Companies’ Deutsche Bank Center. Related finished developing the 2.8 million-square-foot two tower complex on Columbus Circle the year before.

5. Wegmans | Upper West Side | 59,000 square feet

Cult favorite Wegmans took over the lease at the former Bed Bath & Beyond space at 1932 Broadway. The supermarket chain will occupy 59,000 square feet at the base of Glenwood Management’s luxury apartment building. It will be the supermarket chain’s third New York City location, after those at the Brooklyn Navy Yard and Astor Place. A Ripco Real Estate team including Peter Ripka and Gene Spiegelman handled the lease negotiations for the landlord. The long-term lease was signed in February with an asking rent of a blended $3.5 million a year, the New York Post reported at the time.

6. Arte Museum | Chelsea Piers | 52,000 square feet

Big box stores take Manhattan — Chelsea Piers (Chelsea Piers)

Design company D’strict inked a long-term lease for 52,000 square feet of exhibition space at Vici Properties’ Chelsea Piers. The South Korean company will open an immersive exhibition space, Arte Museum, at the 28-acre sports and entertainment complex. D’strict has five immersive museums in Asia and one in Las Vegas. A CBRE team including Anthony Dattoma and Neil King represented the landlord. CBRE’s Joel Stephen and Preston Cannon represented the tenant.

7. PATH Entertainment Group | Times Square | 50,000 square feet

British company PATH Entertainment Group inked a 50,000 square foot lease at SJP Properties’ 11 Times Square. The creators of Monopoly Lifesized will create an immersive experience at the long-vacant, 50,000-square-foot space. SJP, run by Steven J. Pozycki, was asking for $8 million a year, or $160 per square foot. The incoming concept will be an immersive experience by the company that brought Monopoly to London and Dungeons & Dragons to New York. The tenant was represented by the Los Angeles-based Michael Rielly of Rielly Retail Solutions while the building owners were represented by a Cushman & Wakefield team led by Alan Schmerzler and Jason Greenstone.

8. Best Buy | Upper East Side | 46,000 square feet

Best Buy renewed its lease at the base of the Park Avenue Tower condominium building. The lease, for 46,000 square feet at 1280 Lexington Avenue, runs for 10 years. Cushman & Wakefield’s Sean Moran, Steven Soutendijk and Michael O’Neill represented the landlord.

9/10. Bonhams | Billionaires’ Row | 43,000 square feet

British auction house Bonhams inked a deal for 42,000 square feet at Steinway Tower on Billionaires’ Row. Bonhams will be occupying the old home of the Steinway & Sons piano company at 111 West 57th Street, where it will use four levels of galleries and two auction rooms at the property owned by JDS Development, Property Markets Group and Apollo Commercial Real Estate Finance. The auction house will relocate from Minskoff Equities’ 590 Madison Avenue in late 2025. A Newmark team including Jackie Totolo and Pierce Thompson negotiated the deal on behalf of the landlord, while Cushman & Wakefield’s Kenji Ota and Jennifer Konefsky represented the tenant.