Neiman Marcus, former NYC Hudson Yards store, becomes office space

Related Cos., the developer of the Hudson Yards project, has found potential tenants for the former Manhattan home of Neiman Marcus, which is being converted into offices after the Dallas-based luxury retailer closed the store. .

The widespread adoption of hybrid working has cast a cloud over the future of offices, which have again emptied in recent weeks as the omircon variant swept New York.

Still, there’s a lot of demand for Hudson Yards, especially from companies that have space there and want to expand, Related CEO Jeff Blau said in an interview with Bloomberg Television’s David Westin. on “Wall Street Week”.

Interest in the former Neiman Marcus store comes as more Manhattan businesses plan to bring workers back this month, according to Blau.

“Companies are thinking beyond this full return to the office and making the decision to take even more space,” he said. “We’re pretty optimistic about the office side.”

The Hudson Yards luxury mall opened to much fanfare in March 2019. Just over a year later, Neiman announced it would be closing the store for good, its first in Manhattan.

Other highlights from Blau’s interview:

• While Midtown still feels quiet, offices at Hudson Yards have been 40% full in recent weeks, Blau said.
• Related is increasing its bets on “secondary” cities like Charlotte, Austin, Nashville and West Palm Beach that are growing at a faster rate than larger markets like New York or Los Angeles.
• Many New York companies are opening secondary hubs in South Florida to complement their headquarters in Manhattan.

Bloomberg’s Natalie Wong and David Westin

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