Ikea and Hobby Lobby are setting up shop in Manhattan for the first time. The furniture retailer has purchased an 80,000 square foot location on Lower Fifth Avenue, while the crafts store has signed a lease in Tribeca, according to a report from JLL.
Availability on Lower Fifth Avenue in the city has fallen to a record low, declining from 21% in Q2 2023 to 11.3% in Q2 this year, per the report. Availability on Upper Fifth Avenue, meanwhile, has risen from a record low of 10% a year ago to 17.1%.
Lower Fifth Avenue asking rent declined 20.3% year over year, while Upper Fifth asking rents rose 11.6% from Q1 2023 to Q2 2024, JLL said. As tourism has picked up in New York City, most real estate submarkets have witnessed year-over-year spikes in average asking rents, JLL said.
Ikea and Hobby Lobby have been in expansion mode since the start of the year, with both retailers planning new locations in various areas of the country.
In January Ikea said it would open stores in Texas, Georgia and California, with at least three plan-and-order stores also slated to open in Maryland and Texas. The latter locations enable customers to order items, pick up online orders and consult with sales associates.
Since January, Hobby Lobby has announced the opening of 20 stores nationwide, not including the Manhattan lease. The retailer runs more than 1,000 stores in the U.S.
