Home Depot seen changing 23rd St

Real Estate Weekly, Sept 24, 2003 by Elaine Misonzhnik

With Home Depot's arrival in Manhattan, 23rd Street might be getting a wholesome new image.

New York brokers expect the big box store to attract a great number of respectable retailers to the area. Coupled with several new residential developments along Seventh and Eighth Avenues, Home Depot's entrance could turn 23rd Street into a vibrant mixed-use neighborhood.

The famous home improvement store, which has reportedly signed a 110,000 SF lease at 28-40 W. 23rd St., will follow a number of recent newcomers, including Best Buy, a electronics chain store, Cosi, a trendy urban restaurant, and the Olive Garden.

In addition, 23rd Street will soon become a Business Improvement District, getting extra help from the City government in attracting more companies to the area.

"Hopefully, the 23rd Street BID will be operational by June of next year, but there are a lot of things happening in the neighborhood already," said Sharon Ollman, of 23rd Street Association, which is helping set up the BID.

All this activity is bound to attract foot traffic, brokers say, giving incentive for more developments to follow.

"When you have a big box store opening it always serves as an anchor," said Alan Napack, director of retail services with Cushman & Wakefield. "So now you have two huge anchors on the street which has been dead for a while. Retailers look for foot traffic [when they open new stores] and when you see a big box on all the main comers on 23rd Street, you will see a lot more interest from them."

Faith Hope Consolo, vice chairman of Garrick-Aug Worldwide, has been trying to find retail tenants for the new co-op buildings going up in Chelsea. According to her, 23rd will soon be attracting shoppers from all over Manhattan.

"You have here one of the most active neighborhoods in the city," she said. "There are new buildings going up on Seventh, Eighth, and 10th Avenues. There is that project with Best Buy, Cosi and the Olive Garden. 23rd Street now has office, residential and very active retail developments, including several super stores. It will become as exciting as 14th and 57th Streets."

Consolo expects banks and beauty stores to dominate the retail in the area, but other brokers think more furniture stores or even big box leases are possible.

"I think the area will continue to grow in terms of big box stores because there is potential for renting a lot of space at affordable rents," said Robin Abrams, executive vice president of the Lansco Corporation.

"Also, tenants who are affiliated with home furnishing and improvement who didn't see 23rd Street as appropriate before, might want to be next to the Home Depot now."

According to Napack, "Everybody loves Home Depot. Some people go there just to look at the drills. Within a year after the store opens, you'll start to see a lot of change on 23rd Street."