Home Depot Inc. (NYSE:HD) has signed a retail lease in Manhattan that will see it moving into a 120,000 sq. ft. facility on the Upper East Side. Bed Bath & Beyond will be vacating the spaces since its lease will be expiring in 2021.
Home Depot signs 20-year lease for asset Manhattan
The company has entered a lease agreement for the Gazit Horizon-owned property at 410 E. 61st St. on the Upper East Side of Manhattan. The home improvement retailer will move from 713 Lexington Avenue and take up for floors of the property. This is one of the largest retail leases by Home Depot since 2018 in terms of total annual rent and size.
The 20-year lease will begin once Bed Bath & Beyond has vacated the property in January 2021. Construction will commence soon after, and the company will move in within the next few years. Interestingly according to a person familiar with the terms of the lease deal, home depot will pay almost double the rent that Bed Bath & Beyond has been paying.
Deal sign of confidence about retail in New York
Jeff Mooallem, the CEO and President of Gazit Horizons said that the lease was signed in April, and the only hang-up knew the cost to retrofit the deal. Both companies wanted to conduct due diligence to ascertain whether the deal could be achieved from a structural standpoint. Mooallem stated that reports regarding the death of retail businesses in New York were far from true and have been exaggerated. He said that the execution of a deal of such magnitude at the height of the COVID-19 pandemic is a huge sign of confidence regarding retail status in New York.
Home Depot spokeswoman Kim Dimson said that they believe the location will be convenient for residential neighborhoods. She added that the retailer is looking forward to serving customers in the Upper East Side area. Currently, Home Depot has two other locations near New York City, one in the Flatiron neighborhood and another in Midtown.