An exciting retail opportunity — including the first Margaritaville Resort in New York — is coming to the corner of the Times Square area this fall, just in time to captivate the nearly 5 million visitors who flock to New York City between Thanksgiving and New Year’s for the holiday shopping rush.
The exquisite all-glass hotel at 560 Seventh Avenue is Times Square’s latest premium new construction. Developers assembled the lot to build a hotel a few years ago, and the globally successful lifestyle brand Margaritaville was an obvious choice to thrive at this coveted location.
Situated at the corner 40th Street and 7th avenue, 560 Seventh Avenue has arguably the best seat in the house in terms of location. Located at the intersection of Times Square and the Fashion District, with Bryant Park within arm’s reach, the highly anticipated 29-story superstructure is sure to attract attention from the thousands of tourists who visit daily, fashionistas, commuters traveling through the nearby Port Authority and Penn Station, and the core consumers who live and work in the area.
The resort will have 234 rooms and 24,000 square feet designated for retail, the majority of which has already been leased to Margaritaville for several of its famed bars and restaurants. Roughly 4,850 square feet remains available for lease, either by one occupier or subdivided for multiple tenants. This dynamic retail space bodes soaring 20-foot ceilings, 160 feet of all-glass wrap-around frontage and over 1,000 feet of external illuminated signage. This presents a massive branding opportunity for future retail tenants who wish to see their name in lights.
Unlike most New York City neighborhoods that have reported a serious decline in rent in this everchanging retail market, average asking rents in Times Square have increased by 2% year-over-year to a whopping $1,889 per square foot, according to the Real Estate Board of New York’s Fall 2019 Retail Report, with deals typically being made at around $1,500 per square foot. Krispy Kreme, JD Sports, Hard Rock Café and Line Friends are some of the retail giants that have recently locked down their space in the iconic retail hub.
Recent studies and countless lucrative brands like Nike, NFL, National Geographic, Gulliver’s Gate and the Ice Cream Museum prove that incorporating an experiential component to their retail presence is the key to successfully navigating the current market.
Between the 89 million commuters and 50 million annual visitors, shoppers spend upwards of $10 million in Times Square daily. The developers believe that a retailer would gain tremendous buzz and visibility at the base of Margaritaville’s first resort in New York City, as well as 234 rooms filled with potential customers at their fingertips. The intrinsic value of being seen at the new crossroads of the world will translate not only into the direct sales at this location, but also into the potential to impact the brand’s imprint on a global level.
