P
rimark is expanding its presence in New York City with a new flagship store in Manhattan's Herald Square. The Ireland-based fashion retailer has leased 79,000 square feet of space at Vornado Realty Trust's 150 West 34th Street, which includes a 54,000-square-foot flagship store. Primark plans to take over the space next year and open its doors in 2026.

    The lease was negotiated by CBRE's David LaPierre, with an asking rent of $10 million. The property is located near Penn Station, where Primark will face competition from other fashion retailers like Macy's, Urban Outfitters, and H&M.

    Vornado acquired the property for $355 million in 2015, after previously being owned by Starwood Capital Group and Crown Acquisitions. This marks a significant expansion for Primark, which has been growing its presence in New York City's outer boroughs. The company has already leased space at Acadia Realty Trust and Washington Square Partners' City Point development in Downtown Brooklyn and Macerich's Queens Center mall in Elmhurst.

    The retail market in Manhattan is highly competitive, with a record low of 14.7% prime retail space available in the third quarter, according to JLL. Primark's new flagship store will be one of the largest retailers on the block, joining other major brands like Macy's and H&M.