NYC Retail Surge: IBM Building On Sale as Madison Avenue Booms

By Columbus International,24 February 202524 February 2025

Historic IBM Building Hits Market at $1.1 Billion While Madison Avenue Retail Flourishes

In a pivotal moment for Manhattan’s trophy office market, the iconic 590 Madison Avenue – long known as the IBM Building – has been put up for sale with an ambitious $1.1 billion price tag. The State Teachers Retirement System of Ohio, which acquired full ownership of the property in 2015 after initially purchasing it with Edward J. Minskoff Equities in 1994, has enlisted Eastdil Secured to market the prestigious asset.

The 41-story, 1-million-square-foot Midtown tower represents the first potential billion-dollar investment sale in New York City in two years. The timing is particularly significant as it coincides with a reinvigorated retail leasing landscape across key Manhattan corridors, according to the latest Real Estate Board of New York (REBNY) report.

This is a watershed moment for Manhattan commercial real estate. The IBM Building sale will be closely watched as a barometer for how investors truly value premium Manhattan assets in the post-pandemic landscape.

While IBM itself has relocated to SL Green’s One Madison Avenue development, the property at 590 Madison continues to attract blue-chip tenants. Luxury conglomerate LVMH recently secured 150,000 square feet across four office floors at an impressive asking rent of $190 per square foot, with potential plans to expand into the building’s retail space.

Other notable tenants include Reverence Capital Partners, E.F. Hutton, and Crestview Partners. Edward J. Minskoff Equities, which continues to manage the property, is transforming IBM’s former client-facing space into premium amenities available to all tenants.

Madison Avenue’s Retail Renaissance

The iconic tower’s sale coincides with a remarkable retail recovery along Madison Avenue, particularly in the luxury corridor between 60th and 76th streets, where storefronts are nearly fully leased with prestigious brands like Giorgio Armani and Van Cleef & Arpels.

“Madison Avenue has maintained its position as one of Manhattan’s most in-demand retail destinations,” notes the REBNY report. The area has benefited from fashion retailers new to the city, including Boggi Milano at 527 Madison, part of a trend that accounted for 20% of major recent leasing deals.

The retail revival extends beyond Madison Avenue, with seven blocks of Bleecker Street in the West Village approaching full occupancy. Rockefeller Center’s retail space is now completely leased, with a new Eataly Cafe expected to open this year.

However, the recovery remains uneven. Despite increased demand, “asking rent in every corridor except Bleecker Street is at least 10% below its pre-pandemic peak,” according to REBNY’s research head Keith DeCoster. Certain areas, including Midtown Third Avenue, Times Square, and Herald Square, continue to face challenges.

IBM’s Strategic Relocation

IBM’s move from its namesake building to One Madison Avenue has helped energize the eastern portion of the Flatiron District. The tech giant’s relocation is part of a broader trend of companies seeking modernized office spaces with state-of-the-art amenities.

IBM’s new home at One Madison represents the evolution of corporate office demands in the post-pandemic era. This shift has created a domino effect of positive retail activity throughout the neighborhood.

All of One Madison’s storefronts are now leased, including to celebrated chef Daniel Boulud’s new La Tete D’or steakhouse, further enhancing the area’s appeal.

The REBNY report identified multiple factors driving Manhattan’s retail resurgence in the latter half of 2024, including a strong jobs market, healthy tourism, and “back-to-office momentum.” These elements have contributed to several large-scale retail deals, including Ikea on Fifth Avenue and Burlington on Sixth Avenue’s Ladies Mile, some spanning up to 80,000 square feet.

As Manhattan’s retail and office landscapes continue their evolution, the pending sale of 590 Madison Avenue stands as a critical test of investor confidence in New York City’s commercial real estate market. Whether the property achieves its ambitious $1.1 billion asking price could set the tone for trophy asset valuations throughout 2025.

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Whether you’re interested in Madison Avenue luxury retail, emerging neighborhood corridors, or trophy mixed-use properties, Columbus International delivers personalized service with global perspective.

Contact us today to explore NYC’s most promising retail investment opportunities:

Email: info@columbusintl.com
Phone: (+1) 212.327.0160
Website: www.columbusinternational.com

Columbus International Real Estate – Your Gateway to Premium New York City Investments

Bridging Italian and American Markets: Columbus International Rides the Wave of Luxury Residences in New York’s Renowned Madison Avenue

By Columbus International,29 October 2024

New York’s famous Madison Avenue is undergoing an extraordinary renaissance, particularly in the luxury real estate sector. We at Columbus International, a boutique real estate firm that serves as a unique bridge between the Italian (Milan and Tuscany) and American (New York and Miami) markets, are well-positioned to capitalize on this trend.

The impact of the pandemic on Madison Avenue’s stores was undeniable, but luxury retailers are now returning in force, infusing new life into this renowned shopping district. Prestigious brands like IWC Schaffhausen and Boucheron have recently opened flagship stores, signaling a renewed confidence in the avenue’s appeal.

Accompanying this commercial resurgence is a wave of luxury residential developments, which underscores the eternal allure of Madison Avenue as a premier destination. Recently, the Giorgio Armani branded residences at 760 Madison Ave., with their 10 coveted apartments, were quickly sold out, exemplifying the insatiable demand for high-end properties in this iconic location.

But the true jewel in Madison Avenue’s crown could be the upcoming The Surrey, a new five-star Corinthia hotel developed by the British Reuben Brothers. Poised to challenge the city’s other grand hotels, The Surrey boasts 14 exclusive residences that have already captured half the market. “The Surrey was built as a residential hotel in 1926 and has always been the home away from home for many famous New Yorkers,” explains a spokesperson. “Most of the buyers so far are people who live in New York, many in the neighborhood. These are legacy transactions, where people say, ‘I would like to pass this on to future generations, because it is so rare.'”

As Columbus International’s portfolio expands to include these coveted Madison Avenue properties, the company’s unique position as a bridge between Italy and America becomes increasingly valuable. Our clients in Milan and Tuscany are increasingly drawn to the allure of New York’s luxury residences. By offering them direct access to the most prestigious addresses on Madison Avenue, we are not only fulfilling their desires, but also strengthening the cultural and economic ties between our two markets.

With the “luxury residences” trend in New York showing no signs of slowing down, Columbus International is poised to ride this wave of exclusivity, consolidating its reputation as a premier real estate partner for discerning clients on both sides of the Atlantic.

Photo via The Surrey

Madison Avenue’s Luxury Retail Landscape Faces Seismic Shift

By Columbus International,30 August 2024

New York City’s iconic Madison Avenue, long synonymous with high-end retail and opulent shopping experiences, is on the brink of a dramatic transformation. The stretch where East Midtown meets the Upper East Side is poised for significant redevelopment, promising to reshape the skyline and redefine the luxury shopping corridor.

Two major office-retail complexes are slated for demolition, making way for mixed-use projects shrouded in mystery. Meanwhile, the future of the former Barneys building, vacant for four years, remains a subject of intense speculation among fashion aficionados and real estate moguls alike.

In a blockbuster move, Related Companies, helmed by CEO Jeff Blau, is set to raze 625 Madison Avenue. The plan? A mixed-use supertall tower potentially soaring over 1,200 feet, featuring luxury condominiums, high-end retail spaces, and possibly a hotel. The nine-month demolition process has already begun, with scaffolding enveloping the property.

Not to be outdone, 655 Madison Avenue is also on the chopping block. The 24-story building, owned by a joint venture including Jamestown and Williams Equity, is destined for a similar fate. Michael T. Cohen, co-principal at Williams, has hinted at a “mixture of retail, hospitality and residential” for the prime location.

These developments have sparked a retail exodus, with notable departures including Marc Jacobs from its prominent corner location at 655 Madison. The designer’s promised relocation to Fifth Avenue remains unconfirmed, adding to the air of uncertainty.

Across the street, the elegant 10-story former Barneys building at 660 Madison Avenue continues to perplex industry insiders. Owner Ben Ashkenazy’s bold claim of an impending $1 billion sale to “one big retailer” has raised eyebrows and, reportedly, frustration among investors.

Despite these upheavals, Matthew Bauer, president of the Madison Avenue Business Improvement District, remains optimistic. He emphasizes the avenue’s unique appeal to a local customer base and sees the new developments as opportunities to enhance the district’s allure. “These new buildings will not only bring new shopping and hospitality venues to the district, they will bring residents who shall be clients for our stores, restaurants, spas, salons and galleries,” Bauer states.

The redevelopment trend extends beyond these flagship locations, with projects like the Giorgio Armani residences at 760 Madison and Naftali Group’s ventures at 1045 and 1165 Madison Avenue setting precedents for luxury mixed-use developments in the area.

While some see challenges, others spot opportunities. An anonymous retail broker notes, “Any time stores close due to new development, it’s good business for other landlords — and for us. The stores have to find somewhere to go, and there are lots of places to go right now.”

As Madison Avenue braces for this seismic shift, the future of New York’s luxury retail landscape hangs in the balance. With billions of dollars in play and the potential for groundbreaking architectural additions to the skyline, all eyes are on this storied stretch of Manhattan real estate. The coming months and years promise to reveal whether these ambitious plans will reinvigorate Madison Avenue’s cachet or fundamentally alter its character in the ever-evolving world of high-end retail and real estate.

Source: New York Post

Diptyque Paris Unveils Expansive Flagship Store on Madison Avenue, New York City

By Columbus International,27 November 2023

On December 1st, Diptyque Paris will reveal its new flagship store on Madison Avenue, in the heart of New York City, just in time to kick off the holiday season. With two floors and a spacious 2,100 square feet, this space is poised to become a beacon of real estate elegance. Highlighting the strategic importance of the United States as the brand’s leading global market in terms of sales, Julien Gommichon, President of the Americas for Diptyque Paris, emphasized the necessity of establishing a strategic presence with a local flagship store. The store showcases the entire range of Diptyque products, including candles, home and personal fragrances, home decorations, and bath and body products. While specific details about annual sales and brand growth were not disclosed, Gommichon revealed that 40% of Diptyque Paris sales come from the retail sector, expressing optimism that the new flagship store will become a robust revenue engine.

The National Candle Association reports that about 35% of candle sales occur during the holiday season, further underscoring the strategic opportunity of the store opening. Gommichon envisions the flagship store as a space for immersive experiences, with ample room to offer exclusive services and customization options such as engravings and stamps. He emphasized that enhanced experiences and services will be more prominent and accessible to customers in the flagship store. In addition to the extensive product offerings, the flagship store will provide additional services to enhance the customer experience. These include personal shopping, personalized education on fragrance layering, a fragrance refill station, and professional gift-wrapping services. VIP customers can even reserve a private dining room-style area to host exclusive parties and events.

The trend of luxury brands opening flagship stores in the United States has been a significant theme in 2023. Joining the ranks of renowned brands, Diptyque Paris positions itself with this expanded flagship store on Madison Avenue. The new store is twice the size of its original location on Madison Ave., which closed in May for renovations, presenting a more traditional storefront. The impact of Covid-19-related lockdowns on consumer behavior is evident in the renewed focus on home aesthetics and premium products. Diptyque Paris has seen an increase in demand for personal fragrances in the post-Covid period, constituting approximately 40% of the brand’s sales. Notably, the brand has championed non-gendered fragrances since its founding in 1961, a trend that has gained broader acceptance only in recent years.

As the holiday season approaches, Diptyque Paris is poised to capitalize on the anticipated increase in consumer spending. According to the National Retail Federation, holiday sales for 2023 are expected to increase by 3-4% year over year, reaching an impressive range between $957.3 billion and $966.6 billion, a yearly record. Jessie Dawes, Chief Marketing Officer of the Americas for Diptyque Paris, outlined the promotional strategy for the flagship store, including a city-wide out-of-home (OOH) campaign in New York City, paid social media ads, and an opening celebration scheduled for late November. The combination of strategic timing, a prime location, and an engaging shopping experience positions the Diptyque Paris flagship store to make a significant impact in the competitive real estate landscape.

Source: Glossy

Valentino’s latest boutique has just landed at 654 Madison Avenue (Source: V Magazine)

By Columbus International,10 November 20239 November 2024

Valentino‘s latest boutique has just landed at 654 Madison Avenue. After introducing their innovative global retail concept in 2022, which revolves around creating distinctive spaces based on a reinterpretation of the building’s structure through various sales experiences and approaches to interior architecture, the new flagship store in Manhattan is now a pivotal destination for Valentino enthusiasts. Boasting a selling space of 1142 sqm, the new establishment is situated on the corner of Madison Avenue and 60th Street. The building spans three floors, including a basement, a ground floor, a mezzanine, and a second floor. Adorned with iconic columns and tall windows, the space is meticulously designed to provide a glimpse into the materials and architectural silhouettes that define the essence of the boutique’s interiors.

Each floor narrates a unique visual story through chromatic compositions and thoughtfully curated materials palettes, incorporating the maison’s signature red tone. Upon entering, customers are welcomed by grand double doors featuring sculptural marble handles, inspired by the work of artisans whose creations are showcased in Valentino stores worldwide. These handles, crafted in ceramic by the artist Massimiliano Pipolo, are also incorporated within the store. Visitors can explore the grand features of the building, including seven-meter-high ceilings, exposed steel columns (spanning all floors), and a rough concrete finish around the perimeter, highlighted by illuminated shelving dedicated to Valentino Garavani Accessories.

The space is intelligently divided into functional zones through bespoke elements, such as a commanding green onyx display unit at the center, and diverse materials like marble carpets and concrete on the floors that delineate specific areas and functions. Towards the rear of the store, various interpretations of the iconic Rosso Valentino are displayed, along with a dedicated area for footwear featuring floors and seating in contrasting travertine red against the luminous onyx and concrete shelving. On the second floor, the Valentino Women Ready-to-Wear collection is showcased in oversized red lacquered wardrobe structures and matching seating, complemented by chequered floors in white Botticino and black Nero Marquina marbles. La nuova boutique di Valentino è appena sbarcata al 654 di Madison Avenue

Source: V Magazine