NEW YORK CITY—Just when it seemed there was no room for the city to boost its cache on the luxury retail front, a big player may be coming into the market.
Neiman Marcus is thisclose to a deal with Related Cos. to create a multi-level store at Hudson Yards, according to the New York Post. Spokeswomen for both companies declined to comment. A spokesman for Ares Management—which co-owns Neiman—deferred to the retailer while a spokeswoman for the other co-owner, the Canada Pension Plan Investment Board, did not respond to a request for comment by press time.
The store could take up more than 200,000 square feet at Related's 1 million-square-foot complex on the Far West Side, say sources familiar with the negotiations between the tenant and landlord, the Post reports.
Landing such a tenant would be a big get for Related, which has signed credit office tenants with household names, such as Coach and Time Warner, to Hudson Yards but no big retailers.
Neiman heretofore has stayed away from New York City because it also owns ultra-luxe department store Bergdorf-Goodman. However, with the city's ever growing tourist population and a general trend of blockbuster growth in the luxury segment, some industry watchers say Neiman no longer fears impinging on its own success by opening here.
“People don't see it as cannibalizing anymore,” says Faith Hope Consolo, chairman of retail leasing and sales at Prudential Douglas Elliman, to the Post. “There's a much bigger pie now,” she said.
Skeptics note Hudson Yards' relatively tough-to-get-to location—near the corner of 30th and 10th Ave.—and the planned opening next year of Nordstrom's on West 57th street.
Still, Neiman loyalists would welcome the store if it comes to Manhattan, says Consolo. “If Neiman Marcus was in the middle of the river, I'd go.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
