Home Depot making NYC its new home

Real Estate Weekly, Jan 2, 2002 by Parke Chapman

Big box retailer Home Depot is expanding its metro area operations with four new stores scheduled to open in the next year.

It recently opened its second Brooklyn store--its tenth in New York City--and the first Manhattan store is slated to open in 2003. The company now has six stores in Queens, one on Staten Island and one in the Bronx.

"I am delighted to be on hand for the grand opening of Home Depot's tenth store in New York City," said Mayor Rudolph Giuliani at last week's opening ceremony in Brooklyn.

This store, now the largest Home Depot in the metro area, is 158,000 SF with 350 employees.

Home Depot CEO Bob Nardelli gave a nod to the mayor, under whose leadership Home Depot "has established a strong presence in New York City."

"Our stores here are performing extraordinarily well, and we anticipate that we will continue to repeat success in neighborhoods throughout New York," said Nardelli.

The Manhattan Home depot will be located in East Harlem at the former Washburn Wire Plant site. The site has been vacant and decrepit for over twenty years.

Back in 1998, the city announced that Home Depot and Costco would be the anchor tenants at the East River Plaza. Costco subsequently backed out of the plan to occupy space here, however.

"I think Home Depot will do okay up there. Look at how well Fairway did on the west side of Harlem," said Cliff Molloy, a director at GB Richard Ellis.

Optimism aside, another retail broker questioned Home Depot's strategy in Harlem.

"I can see why they chose this location. It's close to the highway, the rent will be cheap and they can have large loading docks here," said Gene Meer, executive director of real estate firm NAI Lawrence Group.

Meer, who handles retail leasing for the firm, was uncertain that residential development in Harlem will provide enough of a customer base for this future store. Also, he noted that the typical Home Depot customer drives to and from the store, and many Manhattan residents don't even own cars.

"It's definitely different out in the country than it is here in the city," he said.

By the end of 2004, Home Depot expects to have 20 stores throughout the five boroughs. Two of the stores slated to open next year will be in Brooklyn, one in Staten Island and a fourth in the Bronx.