Executive vice president with RKF, Josh Strauss, is confident that GLL Real Estate Partners Inc., will soon have a tenant for 140 West 42nd Street, their 17,000 s/f, Times Square-adjacent retail space.
GLL is looking to fill the dual-floor retail property that they purchased in 2014 for $80 million and opened the space to a substantial crowd of interested brokers during an open house event last week.
“140 West 42nd Street is located on the ‘new’ 42nd Street at the crossroads of Times Square and the Bryant Park retail scene, giving potential retailers strong dual co-tenancy and exposure to both New York office professionals and Times Square tourists,” Strauss told Real Estate Weekly.
“In addition to being a tremendous space, it offers the largest digital signage on the block with visibility from the heart of Times Square. The 365 days-a-year traffic from office workers, visitors, commuters and residents make it a tried and true flagship location.”
While Strauss feels that the space is ideal for any retailer that is seeking proximity to both Times Square and Bryant Park, the open house included two conceptual murals that depicted what the space would look like as either a tech-based showroom or as a clothing store.
“We are looking for a truly iconic brand for the space and are open to all sizes and types of tenants, including exemplary brands in technology, fashion and sporting goods that can capitalize on the incredible signage and the high foot traffic,” said Strauss.
“The space is also ideal for smaller fashion, accessories and technology brands and restaurants looking for an excellent multilevel location.”
Munich-based GLL snatched up the new construction — one of four New York City buildings in it’s portfolio — with the intention of cashing in on the space’s catty-corner positioning to the hub of Times Square.
Christian Goebel, executive vice president at GLL said that the store’s location allows it to benefit from the prolific foot traffic that Times Square generates but will offer tenants more competitive rental rates due to the minimal distance from the avenue.
“We are very excited to add 140 West 42nd Street to our growing New York high street retail portfolio,” Goebel said. “The brand new retail unit, with its state of the art LED sign is located in one of the city’s most dynamic locations, providing flagship retailers with the unique opportunity to benefit from the gigantic foot traffic between Times Square and Bryant Park. GLL Real Estate Partners is proud to own this unique asset.”
In the spring of 2015, asking retail rents near the bowtie of Times Square averaged around a $2,413 per s/f, according to the Real Estate Board of New York (REBNY). Those numbers dipped slightly to $2,390 by 2015’s conclusion.
However, Goebel expects the final agreed upon rate for this space to hover closer to the Fifth Avenue corridor prices. Those averages didn’t stray far from $1,200 per s/f south of 49th Street in 2015.