The Home Depot has signed the largest retail lease—for both square footage and rent rate—in Manhattan in the last several years. The home improvement retailer will move into a 120,000-sq.-ft., four-level space at First Avenue and 61st Street. Construction in the space will begin in 2021. The space is currently home to a Bed Bath & Beyond store, whose lease expires in 2021.
“The execution of this lease, at the peak of the COVID-19 pandemic, is an important sign of confidence in New York City and a major accomplishment for all parties involved,” Gazit Globe CEO Jeff Mooallem told Chain Store Age. “The property garnered strong interest from a number of tenants at sizable rent increases from the current tenant, even as New York was shutting down.”
Home Depot signed a 20-year lease for the property, which is located one block north of the Queensborough Bridge. Both the landlord and tenant were represented by Peter Ripka of Ripco Real Estate.
“As is so often the case in large retail transactions, the stars aligned to get this done,” Ripka told the publication. “The space is ideal for Home Depot, with large footprints, high ceilings, and excellent loading.”