Wegmans Plans More Manhattan Stores, Vornado CEO Says
America’s favorite grocery store is keen on signing more deals in the nation's financial capital.
Vornado Chairman and CEO Steven Roth told shareholders on his company's quarterly earnings call Tuesday that the 30-year, 82K SF lease Vornado signed with the grocer at 770 Broadway in July was just the beginning.
“You can bet that we will do several more Manhattan deals with Wegmans,” Roth said on the call. “The fact that Wegmans is coming is creating excitement.”
Wegmans is known for its huge floor plans, spanning from 75K SF to 140K SF —which can be more than three times larger than the average grocery store — and Vornado owns several retail spaces that fit that bill.
Home Depot announced it was leaving its 80K SF space at Vornado’s 731 Lexington Ave. after it signed a 120K SF deal at 410 East 61st St. last October. JCPenney permanently shuttered its 150K SF storefront at Vornado’s Manhattan Mall in Herald Square amid its bankruptcy filing last summer. JCPenney’s former space is still vacant and Roth said Vornado doesn't expect to fill it in the short term.
Vornado also owns several Times Square retail properties with large floor plates such as 1535 Broadway, 1540 Broadway and 1601 Broadway, as well as more Herald Square properties such as 330 West 34th St. and 7 West 34th St.
Roth provided more details about the lease terms at the Astor Place location on the call: Vornado doled out $13M in concessions for tenant improvements, free rent and lease commissions. Wegmans expects up to half of its sales to be delivery-based, Roth said. The grocer plans to open that location in 2023.