TJ Maxx has signed its first New York City lease in 10 years, taking a 40,000-square-foot space at Herald Towers in Manhattan’s Herald Square district, Chain Store Age has reported.
The off-price retailer will occupy space directly across from Macy’s flagship store and Madison Square Garden, placing it in one of the city’s highest-traffic retail corridors.
The deal underscores renewed momentum in Herald Square, which has seen a surge in leasing activity over the past year. More than 100,000 square feet of retail space has been leased at Herald Towers alone in the last 10 months, according to landlord JEMB Realty. Recent tenants include Old Navy and Moo Futu.
“Herald Towers continues to attract best-in-class national retailers seeking scale, visibility and unmatched connectivity,” said Jacob Jerome of JEMB Realty, who led the transaction.
“Welcoming TJ Maxx alongside Old Navy further accelerates the resurgence of Herald Square retail.”
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Retail demand along 34th Street has been particularly strong. Zara recently signed a lease for an 18,000-square-foot space at 31 W. 34th St., while Primark plans to open a 78,000-square-foot store in the former Old Navy location vacated as part of its move to Herald Towers.
The leasing activity comes amid rising retail rents in Manhattan, which have jumped nearly 17%, according to a recent report from JLL. Brokers say competition for prime space has intensified.
“There’s a ton of tenants in the market and, for the first time in a long time, there are multiple proposals for spaces,” said Patrick A. Smith, vice chairman of JLL’s retail brokerage told Chain Store Age.
JLL’s latest City Retail Report found that New York, Los Angeles and Miami account for roughly 60% of notable retail expansion in prime urban corridors across the U.S. and Canada, and more than 80% of luxury and “luxury-lite” openings.
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