GNC Leases 2,100 Square Feet at 302 Canal Street as Corridor Transforms
GNC signed a 10-year lease (with a five-year option) for 2,100 square feet at 302 Canal Street, The Commercial Observer has learned.
It will be the health and wellness retailer’s 47th Manhattan location. The store will be evenly divided between a ground floor and basement space. The previous tenant was a local shoe and apparel store.
RKF‘s Ariel Schuster and Greg Covey represented the tenant. ABS Partners Real Estate‘s Mark Tergesen represented the landlord, Charbern Management Group. GNC’s Rory McCutcheon worked in-house on the deal.
“We’ve been working with GNC since 2009 and have secured five leases for them,” Mr. Covey said. “And there are several more leases currently in negotiations.”
GNC was lured to 302 Canal Street by its proximity to public transportation and positioning on the southern end of Soho. “It’s really at the epicenter of a few differently heavily foot-trafficked neighborhoods,” Mr. Covey said.
Canal Street is no stranger to foot traffic, but until recently national retailers had often overlooked the once-scuzzy thoroughfare synonymous with knockoff purses and other cheap accessories.
“Two years ago, 90 percent of this block was shut down,” said Mr. Tergesen, referring to a crackdown on counterfeit vendors. “Now it’s piquing the interest of strong national and local retailers. The stores are in flux, but the traffic remains.” Mr. Tergesen cited the perpetual bustle of nearby Broadway as an additional selling point and put the asking rents at about $200 per square foot.
Mr. Covey also spoke about changes afoot on the corridor. “There’s been a growing interest in Canal Street,” he said. “Investment money is being thrown that way, and institutional landlords are taking a look. In the next few months you’ll begin to see a significant change.”