'Green' retailer gives Times tenants food for thought

Real Estate Weekly, March 14, 2007 by Linda Barr

Forest City Ratner has welcomed a 'green' retailer as its first store tenant at the environmentally advanced New York Times Building.

Japan-based MUJI will feature distinctive stationery, housewares, furniture, fabrics, clothing and personal accessories at its first flagship store in 5,000 s/f along 40th Street, overlooking the moss-and-birch-tree garden on the building's ground floor.

"We are honored that MUJI--a retailer known the world over--has chosen to put its American flagship store in The New York Times Building," Bruce Ratner, president and CEO of FCRC.

"I'm especially pleased that a global pioneer in environmentally friendly retail practices will be a centerpiece of our retail mix. MUJI's dedication to useful and well-designed products makes them a perfect fit for the elegant and environmentally advanced tower Renzo Piano has designed."

FCRC owns 700,000 s/f of The New York Times Building, from floors 28 through 52 as well as 21,000 s/f of ground-floor retail space. The New York Times Company owns the rest of the building, which will serve as its corporate headquarters beginning later this year.

According to MaryAnne Gilmartin, executive vice president at Forest City Ratner, while the fact that Muji is an eco-pioneer was embraced, it wasn't the only factor in the landlord's decision to lease the retailer the space. "We have found that environmentally sensitive retailers have flocked to the building because of what the building represents and while that does resonate with us, it is not the only factor influencing our decision."

In its search for tenants FCR is examining the strength or the retailer's operating history, quality of their brand and, most importantly, their ability to meet the perceived needs of the tenants upstairs.

The company carried out numerous surveys among tenants to determine exactly what they want from the downstairs retail. The survey showed most want restaurants, restaurants and more restaurants.

"At this point, it is likely that Muji will be the only dry use retail space in the building," said Gilmartin, adding, "The majority will be food related because that is our customers perceived need for the building."

While she declined to discuss specifics, Gilmartin predicted at least one high quality sit down restaurant, and high quality take eatery which the facility to cater. "We don't think you can put enough high quality sit down and take out food in this building," she added.

While the firm has been in "active discussion" with several potential tenants, Gilmartin said no deals had yet been struck for the remaining retail space which, she said, would be filled with "hand-picked" tenants.

"We only have 21,000 square feet of retail, so have to make it count so we are handpicking retailers with the same care and patience that we put into designing the building," she said. "We recognize how powerful a presence the retail i, and it is important we utilize it in a way befitting the building."

With face rents at $150 psf and tenants required to fund the fit-out for the space, there's been no shortage of interest in the space and Gilmartin predicts it should be fully leased by the spring.

The MUJI store will open in time for the 2007 holiday season, serving thousands of workers in building at 620 Eighth Avenue as well as the half-million New Yorkers and visitors who pass through Times Square every day.

Hiroyoshi Azami, president of MUJI U.S.A. Ltd, the U.S. subsidiary of MUJI's corporate entity, commented, "We feel that the ideal location for our American flagship store is at the crossroads of the world--and that describes The New York Times Building exactly. MUJI products are known as 'essential elements of living,' and are based on a philosophy of simplicity, minimalism and consumer functionality. We look forward to sharing both our products and our philosophy with New York City and America at large."

MUJI--which means "no-brand quality goods"--emphasizes use of original and innovative materials and efficient clear-cellophane packaging to reduce costs. It places a premium on using recycled products and avoiding unnecessary waste in manufacturing.

The retailer's philosophy of marrying environmentally sound practices to exceptional design follows the ethos of The New York Times Building, which strives to create a healthful environment for the building's workforce.

The renowned Japanese interior design architect Takashi Sugimoto, principal of Superpotato Co. Ltd. will design the MUJI store so that it is integrated with the building designed by Renzo Piano, in association with FXFOWLE Architects.

MUJI's products have attracted devoted customers in Japan and around the world. Some of its products are currently available at the MoMA Design Stores and its wall-mounted CD player, designed by award-winning Japanese designer Naoto Fukasawa, is in the Museum of Modern Art's permanent collection.

MUJI was represented by Naomi Okada of the New York City-based Okada International in the lease negotiations. FCRC represented itself.