Posted Feb 6, 2020, 6:53 AM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 51,815
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Quote:
Originally Posted by Crawford
Macy's has upsized this tower to 1.5 million sq. ft. Almost certainly a supertall. Could have a massive presence, given it will be built atop the existing structure.
Macy’s Planning Larger-Than-Expected Office Tower Atop Flagship Store
https://www.wsj.com/articles/macys-p...re-11580853551 |
A little more from that...
Macy’s Planning Larger-Than-Expected Office Tower Atop Flagship Store
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Chief Executive Jeff Gennette said in an interview that the retailer aims to build 1.5 million square feet in office space above the block-long building that houses one of the largest department stores in the world. Previous news reports said Macy’s was pursuing a tower with 1.2 million square feet of space.
The tower would include a sky lobby with sweeping views of the city. Macy’s also has indicated it would help with upgrades to the surrounding area, including subway stations.
Macy’s has been in discussions with city and state officials to get clearance for the project since at least last year, according to the company’s public filings. Mr. Gennette said details are still being worked out and he plans to discuss them on Wednesday at an event with analysts and investors mapping out the next leg of Macy’s strategy, which includes closing 125 department stores during the next three years.
The company’s development plans reflect both how big-box retailers and department stores are eager to find new revenue streams and how the Manhattan office market is heating up.
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While the rise of e-commerce has hurt retail rents, growing demand from tech and other creative industries for New York City office space has helped power that market. In 2019, Manhattan office leasing rose nearly 16% from the previous year to 48.9 million square feet, according to Newmark Group Inc.
“The highest and best use in the current market is often tech office,” said Alexander Goldfarb, senior REIT analyst for Piper Sandler Cos . “Before it was street retail, and before that it was condos.”
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The Herald Square location sits near Penn Station in a neighborhood where firms from the tech, advertising, media and design sectors have been expanding into buildings once dominated by apparel production.
New mixed-use developments in the Hudson Yards district rising near Herald Square have attracted an array of major companies including social-media giant Facebook Inc. and money manager BlackRock Inc., raising the potential for office demand spilling into neighboring areas.
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Macy’s already has used the model of selling developers air rights and floors above its retail operations to build commercial space.
In 2016, Macy’s sold the remaining upper floors of its downtown Brooklyn store and air rights for the site and a nearby parking garage to real-estate company Tishman Speyer for $270 million.
New for-profit school Whittle School & Studios will make the 10 floors above that Macy’s store its home.
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NEW YORK is Back!
“Office buildings are our factories – whether for tech, creative or traditional industries we must continue to grow our modern factories to create new jobs,” said United States Senator Chuck Schumer.
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