News Summary

Ikea has purchased a retail property in SoHo, Manhattan, for $213 million, previously home to Nike’s flagship store. The deal outlines plans to create a retail space and office use in the six-story building, marking a significant move into the Manhattan retail market. This acquisition reflects Ikea’s ongoing efforts to adapt to urban retail demands, suggesting a shift in strategy following challenges in previous attempts to establish smaller stores in the city.

New York City

Ikea has acquired a retail property in SoHo, Manhattan, for $213 million, where Nike currently operates its flagship store. The deal, finalized on September 30, was signed by Carlisle Bostic, Ikea’s associate general counsel for North America. The property, located at 529 Broadway, is a six-story building covering approximately 58,000 square feet.

The first and second floors, totaling about 25,000 square feet, will be transformed into a retail store, while the lower level will serve as storage and operations space. The upper floors are planned for renovation to accommodate office use and will be managed by Ingka Investments, the investment arm of Ikea’s parent company, Ingka Group.

The seller, Wharton Properties, led by Jeff Sutton, purchased the building in 2012 for $146.9 million. Nike currently occupies all six floors of the building, but it is uncertain when the company plans to vacate or how much their current rent is. Nike’s initial rent when it moved in 2016 was $257 per square foot, a figure that may have increased, as the average commercial rent in SoHo exceeded $621 per square foot in the first half of this year.

Location and Historical Context

The building is strategically located between Spring and Prince streets in SoHo. Nike signed the lease for this prime location in 2013 and moved in three years later, further solidifying its presence in one of New York City’s most fashionable districts.

Previous attempts by Ikea to penetrate the Manhattan retail market have proven challenging. A planned 17,000 square foot store at 999 Third Avenue in 2019 never materialized. Currently, Ikea’s only existing location in New York City is a much larger store in Red Hook, spanning 346,000 square feet.

Future Plans and Trends

This acquisition aligns with a growing trend of significant retail transactions in New York City. The property may undergo renovations as Ikea evaluates its new space to fit more traditional retail needs, contrasting with Ikea’s large-format stores typically zoned for big-box retail. The company previously attempted a smaller concept called an “Ikea Planning Studio” at 999 Third Avenue, but it only lasted three years before closing.

Looking ahead, Ikea has ambitious projects underway, including an 80,000 square foot “customer meeting point” slated for 570 Fifth Avenue, expected to open in 2028. This suggests a commitment to creating more accessible retail options within urban centers while adapting to changing consumer preferences and market dynamics.

In related leadership news, Ingka Group CEO Jon Abrahamsson Ring is set to be succeeded by Jakub Jankowski starting January 1.

As Ikea solidifies its foothold in Manhattan through this acquisition, industry watchers will be keen to see how the transformation of this SoHo property plays out and what it could mean for the future of retail in New York City.

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Additional Resources

• Crain’s New York: Ikea Buys Soho Manhattan Building
• Wikipedia: IKEA
• Commercial Observer: Ikea Buys Nike Store SoHo
• Google Search: Ikea acquisition SoHo
• Reuters: Ikea Buys $213 Million Manhattan Building
• Google Scholar: Ikea New York retail
• The Real Deal: Ikea Buys Soho Real Estate from Jeff Sutton
• Encyclopedia Britannica: Retail Trends
• Bisnow: Ikea Makes Soho Buy for $213M
• Google News: Ikea SoHo New York

Author: STAFF HERE NEW YORK WRITER

The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.