Vornado Realty Trust and Newmark Expand Retail Corridor in Penn District

Vornado Realty Trust is advancing its $2.5 billion redevelopment of the Penn District in Midtown Manhattan by partnering with Newmark, which has been appointed as the exclusive leasing agent for a new retail corridor along Seventh Avenue between 33rd and 34th Streets. This initiative aims to enhance the area’s retail landscape, complementing existing anchors such as Macy’s and the upcoming 78,000-square-foot Primark flagship store, set to open in spring 2024.

Vornado and Newmark to expand Penn District with more retailVornado Taps Newmark for Retail Leasing in Midtown’s Penn DistrictThe Vitamin Shoppe opens AI-enabled store in NYCNYC MTA Unveils $12 Billion Push to Replace Aging Trains, Buses

The retail corridor is part of a broader vision to transform the Penn District into a vibrant mixed-use neighborhood, featuring world-class office spaces and public amenities. Over the past decade, Vornado has redeveloped over five million square feet of Class A office space and created more than 300,000 square feet of public plazas, alongside 1.1 million square feet of new retail space. The project also includes the development of the Moynihan Retail Corridor, which serves as the main commercial hub of the Moynihan Train Hall.

Vornado and Newmark to expand Penn District with more retail

Demolition of existing structures, which Vornado has described as “junk retail,” is scheduled to begin later this year, with completion of the new retail spaces expected in 2027. The redevelopment will involve the construction of three-level “retail boxes” designed for traditional retailers rather than fast-food outlets. The existing tenants currently hold short-term leases, facilitating the transition to the new retail environment.

Vornado and Newmark to expand Penn District with more retail

Glen Weiss, executive vice president and co-head of real estate at Vornado, emphasized the firm’s commitment to creating a diverse retail experience, stating, “Through our redevelopment of the Penn District, we have thoughtfully curated a diverse blend of local and nationally owned restaurants, cafes and shops that offer something for all workers, residents, commuters and visitors who experience the neighborhood on a daily basis.” This sentiment reflects Vornado's strategy to establish the Penn District as a 24/7 neighborhood catering to various tastes and occasions.

Vornado and Newmark to expand Penn District with more retailVornado Taps Newmark for Retail Leasing in Midtown’s Penn DistrictThe Vitamin Shoppe opens AI-enabled store in NYCNYC MTA Unveils $12 Billion Push to Replace Aging Trains, Buses

Despite the ambitious plans, the project faced setbacks, including a pause in February 2023 due to pandemic-related market conditions. Additionally, the redevelopment of the former Hotel Pennsylvania site, a significant aspect of the project, has encountered delays, with previous proposals for temporary venues not materializing.

Vornado and Newmark to expand Penn District with more retail

As Vornado and Newmark move forward with the retail corridor, the focus will remain on enhancing the overall experience of the Penn District. The collaboration aims to create a cohesive retail environment that aligns with the ongoing transformation of the area surrounding Penn Station, which is the largest transportation hub in the world.

Vornado Taps Newmark for Retail Leasing in Midtown’s Penn District

• “We have methodically remade the Penn District as a 24/7 neighborhood for every occasion and every taste.” — Glen Weiss, Executive Vice President, Vornado Realty Trust

Vornado and Newmark to expand Penn District with more retail

• “The success of our transformative work is evident across all corners of the neighborhood.” — Glen Weiss, Executive Vice President, Vornado Realty Trust

Vornado Taps Newmark for Retail Leasing in Midtown’s Penn District