Under Armour Makes the Leap To Fifth Avenue
Under Armour Inc. hopes to up its game with a sprawling retail store in one of Manhattan’s most expensive shopping districts.
The Baltimore sportswear maker’s chief executive told analysts Tuesday the company would put “the world on notice” by taking most of the space once occupied by the FAO Schwarz toy store on Fifth Avenue between East 58th and East 59th streets.
The 53,000-square-foot space in the General Motors Building will give the company a showroom in a section of Midtown Manhattan brimming with high-end retail and year-round throngs of tourists.
“Effectively, the goal that we have is to build the greatest single retail store in the world,” CEO Kevin Plank said in a conference call with analysts. “And we know that’s a big statement with a big company, but I think that that’s the opportunity we have.”
The stretch of Fifth Avenue is also known for its high rent. Toys “R” Us Inc., owner of FAO Schwarz, cited the rising costs of operating on Fifth Avenue when it closed its store in July 2015.
However, some brokers say the high asking rents don’t tell the full story. Landlords are able to attract big retailers because they are willing to offer generous tenant improvement packages to pay for costs such as building the store interior, said Ross Burack, a broker with Winick Realty Group LLC.
“These landlords pay tenants millions so they can get their asking rents, ” Mr. Burack said. “That’s how certain areas, such as Upper Fifth Avenue, are able to keep attracting these retailers at above comparable rents.”
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Winick Realty Group is one of New York’s prominent real estate firms specializing in retail leasing and advisory services. Over the years, Winick Realty has served a broad range of domestic and global clients, with a strong emphasis on long-term representation and expansion and growth strategies. Winick Realty Group is highly recognized as a forerunner in the retail real estate market.