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Neiman Marcus Hudson Yards being eyed for office space

By Kristopher Fraser

Jun 10, 2020

As Neiman Marcus is working through its bankruptcy plan, they are eyeing what stores to close. One of those stores could potentially be the Neiman Marcus Hudson Yards store, which is an anchor tenant for Hudson Yards. As Neiman Marcus is mulling whether or not to close the store, its landlord is looking at shopping the store out for office space.

Business Insider reported that Related Companies and Oxford Properties, the developers of Hudson Yards, have also begun marketing Hudson Yards office space to potential tenants. Approximately 380,000-square-feet are up for grabs.

The office spaces would be about 40 percent of the space available for tenants at Hudson Yards. While the space was originally conceived as a true mall, and the developers shelled out massive amounts of money to court Neiman Marcus into anchoring the space, Neiman's bankruptcy situation and the economic fallout from coronavirus have turned Hudson Yards on its head.

Neiman Marcus' Hudson Yards store has been closed since March due to coronavirus lockdown restrictions. Nationally, Neiman Marcus has opened 13 stores and plans to open seven more this week. New York City began phase one of its reopening plan this week, which allows retail stores to offer in-store pick-up and curbside delivery.

Neiman's has neither confirmed or denied the future of its Hudson Yards flagship. A Neiman Marcus spokesperson told the New York post that, "We are confident in the performance of our overall store footprint. In fact, stores that have been open for more than a year prior to COVID-19 are 4-wall EBITDA positive. That said, we always assess our stores based on our footprint to ensure it is optimal to enhance revenues and overall profitability, as well as how each store can best support our omnichannel strategy.”

photo: courtesy of Neiman Marcus