Five Below Opening 10K-SF Times Square Shop
By Mark Hallum February 15, 2022 4:33 pm
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Discount store Five Below will be setting up shop in Times Square.
The discount retailer — specializing in products under $5 along with others going up to $25 — signed a 10,000-square-foot lease for a two-floor space at Tishman Realty’s E-Walk Retail and Entertainment complex at 233-267 West 42nd Street, Commercial Observer has learned.
An opening date for the specialty store is set for the end of 2022, tenant broker JLL (JLL) said that it will coincide with a planned opening of Target in the spring and the completion of $60 million capital improvements to the complex between Seventh and Eighth avenues.
Erin Grace and Hilary Sievers with JLL represented Five Below in the transaction. Tishman handled it in-house via James Fitzgerald and Corinne Walker along with JLL’s Patrick Smith, Corey Zolcinski and Matt Ogle.
“E-Walk’s location, adjacent to Times Square’s ‘Bowtie’ area, provides an incredible opportunity for retailers seeking a flagship-type store at competitive rental rates,” Smith said in a statement.
Tishman did not immediately respond to a request for comment and JLL declined to provide the length of the lease. Asking rents on the ground floor were between $600 and $800 per square foot while second floor asking rents were $150 per square foot, according to JLL.
Target previously signed a deal for 33,000 square feet at 233-267 West 42nd in December 2019 agreeing to asking rents of $800 per square foot on the ground floor and $125 per square foot on the lower level, CO reported.
Regal Cinemas’ United States flagship is also located at the property, which was fully renovated during capital improvements made to the complex, which was originally built in 1995.
The national chain caused some friction in July 2018 when it planned to open a flagship at General Growth Properties’ 530 Fifth Avenue for its first Manhattan location. The 10,800-square-foot store raised eyebrows as retail brokers expressed frustration telling CO “There goes the neighborhood.”
With a discount story hardly fitting the picture on Fifth Avenue and 45th Street, one broker said at the time that Five Below should be sent three below; at least as far as 42nd Street.
Mark Hallum can be reached at mhallum@commercialobserver.com.
