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Food Hall Concept Inks Big Lease At Starrett-Lehigh Building

The Starrett-Lehigh Building in Manhattan's Chelsea neighborhood.

A massive food hall is set to open next year in RXR Realty’s Chelsea office building, even amid an uncertain future for food and beverage in the city.

A Chicago-based hospitality collective called 16” on Center — or 16OC — is taking 13K SF at the building, the New York Post reports.

The offering, which will feature various sit-down and takeout counters rather than traditional restaurants, will open at the building at 601 West 26th St. in the second quarter of next year. Food halls have seen an enormous spike in popularity in recent years, particularly in the city. The price per square foot was not revealed, and neither side gave the publication an indication of the exact date of opening. A representative for the landlord said it has great “faith” in the future of the market.

In June, representatives for RXR told Bisnow while office workers are able to return to their desks, most of the company’s buildings are operating at between 5% and 15% occupancy. 

The deal comes at a time of great upheaval for the city’s food and beverage scene. While outdoor dining is permitted, many restaurants and bars have not been able to meet their rent obligations. Indoor dining remains banned in New York City, and operators fear what will happen to businesses when it becomes too cold to serve on the street.

In the interim at least, many restaurants say they want their landlords to switch to percentage rent deals so they have a chance to stay afloat.

RXR in-house brokers Reed Zukerman, Brian Cheeseman and Whitney Arcaro represented the landlord with Newmark Knight Frank's Peter Fine and Janey Steinmetz in the deal.

Related Topics: RXR Realty, food halls