Thursday, September 25, 2014

Saks Deal Is A Sign of New Luxury Era in Downtown Manhattan

From the WSJ's Developments blog:
Rendering of new Brookfield Place retail complex
Luxury retail is beginning to boom in Downtown Manhattan.

The announcement Wednesday that a Saks Fifth Avenue department store will open in Brookfield Place is the latest sign that shopping in the city’s financial district is going upscale. Other tenants that Brookfield Property Partners LP has signed at the retail complex that it’s overhauling include Burberry, Emenegildo Zegna and Salvatore Ferragamo.

The new Saks Fifth Avenue “will cater to what we believe is an underserved and rapidly growing downtown luxury markets,” said Richard Baker, chief executive, of Hudson's Bay Co., the Canadian department store owner that acquired Saks last year.

In the deal announced Wednesday, Hudson’s Bay said it would open an 85,000 square foot Saks Fifth Avenue in Brookfield Place and a 55,000 square foot Saks Off Fifth outlet at One Liberty Plaza, which also is owned by Brookfield. In addition, Hudson will lease 400,000 square feet of office space in Brookfield Place, which will become the company’s New York home office.
Until recently, stores in Downtown Manhattan primarily served commuters and office workers. Many of the biggest retailers in the area, like Century 21, were known partly as discounters. Only a few luxury stores, like Tiffany and Hermes have opened in the Wall Street area....MORE