Real Estate

Hobby Lobby Signs 70,700 sf Lease in Tribeca, Second NYC Location

Hobby Lobby secures 70,700 sf lease in Tribeca, marking its second NYC location.

By Doug Elli

7/10, 12:24 EDT
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Key Takeaway

  • Hobby Lobby signs a 70,700-square-foot lease at 270 Greenwich Street in Tribeca, marking its second NYC location.
  • The deal is one of Manhattan's largest retail leases this year, boosting the city's retail market amid rising rents and decreasing availability.
  • This follows Ikea's recent 80,000-square-foot lease at Extell Development’s new tower on Fifth Avenue.

Hobby Lobby's Bold Move into Manhattan

Hobby Lobby, the well-known craft retailer, is making a significant entry into Manhattan's retail market with a substantial lease in Tribeca. This marks the chain's second New York City location, following its debut in Staten Island. According to JLL leasing data, Hobby Lobby will occupy a 70,700-square-foot space at 270 Greenwich Street, making it one of the largest retail leases in Manhattan this year. This move underscores the retailer's strategic expansion into high-traffic urban areas, aiming to capture a broader customer base in one of the world's most competitive retail markets.

Details of the Tribeca Lease

The new Hobby Lobby store will be situated at the base of a 35-story luxury building between Murray and Warren streets, sharing the ground floor with a Whole Foods store. The space was previously occupied by a Barnes & Noble, which closed earlier this year. The deal was brokered by Sam Martorella of Ripco Real Estate. This lease is a significant boost to Manhattan's retail market, which has seen average asking rents rise and availability rates fall, although rents have not yet returned to pre-pandemic levels. The strategic location in Tribeca positions Hobby Lobby to attract a diverse and affluent customer base.

Manhattan's Retail Market Dynamics

Manhattan's retail market is showing signs of recovery, with average asking rents increasing and availability rates decreasing, as reported by JLL. However, the market is still grappling with the aftermath of the pandemic, with rent prices remaining below pre-pandemic levels. Key retail corridors like Madison Avenue and the lower portion of Fifth Avenue have the lowest availability rates, while the upper part of Fifth Avenue has seen an increase in vacancies. The entry of major retailers like Hobby Lobby and Ikea, which recently secured 80,000 square feet at 570 Fifth Avenue, indicates a positive trend towards market stabilization and growth.

Broader Implications for Retail Real Estate

Hobby Lobby's expansion into Manhattan is indicative of broader trends in the retail real estate sector. Major retailers are increasingly seeking prime urban locations to capitalize on high foot traffic and affluent demographics. This move by Hobby Lobby not only highlights the retailer's growth strategy but also signals confidence in the recovery and potential of Manhattan's retail market. The deal reflects a broader trend of retail resilience and adaptation in the face of changing market dynamics and consumer behaviors.