Macy's is calling on the help of Tishman Speyer to redevelop its flagship store in San Francisco's Union Square, in addition to stores in Manhattan, Chicago and Minneapolis. After successfully working with Tishman Speyer to redevelop its Brooklyn store, Macy's has hired the firm to explore potential redevelopment projects at other locations.
In Brooklyn, the retail giant held on to the lower four floors of its downtown department store, and Tishman Speyer purchased the rest of the building to develop high-end office space. Tishman may be asked to bid for some of the projects to come, Macy's says.
Macy's says it wants to redevelop properties to maintain its retail presence while adding alternative uses to those buildings. The exploration of alternatives could extend into Macy's mall-based properties as well, reports the San Francisco Business Times. The Union Square Macy's might follow the path of Walnut Creek's Broadway Plaza (rendering shown above), where Macy's expanded to include merchandise consolidated from the men's department into a single store. In the case of Union Square, that would allow the sale of the nearby men's store.
The company also will consider selling properties where the value of the real estate outweighs the value of the retail business, such as its recent sales of stores in Cupertino and downtown Pittsburgh. [SFBT]
