Vornado Realty Trust is furthering its massive revitalization of Manhattan’s Penn District by redeveloping a busy stretch of Seventh Avenue to accommodate new retail.
The project has involved the demolition of three structures, then rebuilding them along the stretch of 34th to 33rd streets on the east side of Seventh Avenue, except for the corner office building on 33rd Street. The plan also calls for substantial improvements to the existing 435 Seventh Avenue site. In total, Vornado sees making more than 100,000 square feet of space available to retailers seeking to enter the neighborhood. Vornado has hired Newmark, a global commercial real estate advisory and services firm, to spearhead the leasing. There are delis, pizzerias and other prosaic businesses that have been occupying that part of Seventh Avenue for decades.
“Seventh Avenue and 34th Street is the gateway to the neighborhood. Now is the time for that gateway to have new retail for the area’s office workers, residents, commuters and tourists,” Glen Weiss, executive vice president and co-head of real estate at Vornado, told WWD.
“This is the next chapter of the evolution of the neighborhood. We have completely reinvented the neighborhood. Phase one is complete,” involving successfully leasing 3.6 million square feet of office space, and attracting 70 new food and beverage establishments, including inside Moynihan Train Hall, on the concourse of the Long Island Railroad, on the base of office buildings, and along the pedestrian-only West 33rd Street across from Madison Square Garden and Penn Station. Among restaurants that have opened in the Penn District in the last few years are Avra, Bar Primi, Blue Ribbon Sushi and The Dynamo Room.
Glen Weiss
Vornado is among the largest and most impactful landlords and developers in New York City, particularly with its commercial projects in Penn District. Vornado has poured billions into redeveloping the district, which is bordered by West 34th and West 31st streets and Sixth and Ninth avenues. It’s a huge transportation hub for the Long Island Rail Road, Amtrak, PATH, New Jersey Transit and 15 subway lines. Metro North is expected to link up in 2027.
The intersection of Seventh Avenue and 34th Street has the highest pedestrian footfall in the country, with an average of 650,000 people passing through Penn Station daily. Penn District is arguably the epicenter of Manhattan’s West Side.
Vornado, a real estate investment trust, has introduced well over 1 million square feet of new retail space for restaurants and stores into the district, with more than 800,000 square feet of it leased to F&B.
Through Penn District, “We’ve done a lot of leasing to food and beverage outlets — over 70. Now is the time to change it up with retail,” with clothing, athleisure, cosmetics and entertainment brands being considered, said Weiss. Completion of the retail project is anticipated during the fourth quarter of 2027.
“Stores could be open by then depending on the leasing,” Weiss said.
The 100,000 square feet of retail space is expect to house three to five retailers, he said. “We want this to have an authentic New York soul, with the feel and the product mix to be like SoHo.”
In 2023, Vornado demolished the old Pennsylvania Hotel on Seventh Avenue between 32nd and 33rd streets, leaving a vacant 80,000-square-foot parcel. Vornado is considering building an office tower there, which could have a mix of uses, including some retail.
Vornado’s intent on revamping Penn District’s retail component was exemplified by the May 8 opening of a Primark flagship on 34th Street between Sixth and Seventh avenues, the retailer’s first store in Manhattan. The 54,000-square-foot Primark store, on the site of a building owned by Vornado, has been attracting big crowds since its launch.
