Vornado and Newmark to expand Penn District with more retail
Seventh Avenue between 33rd and 34th Streets. Photo © 6sqft
Vornado Realty Trust’s Penn District in Midtown East will grow further as the firm teams up with another major real estate company to create a new retail corridor along Seventh Avenue between 33rd and 34th Streets. On Monday, Vornado announced that Newmark has been named the exclusive leasing agent for the next stage of the Penn District, which will feature a street-level “retail experience” alongside existing anchors Macy’s and Primark, whose 78,000-square-foot flagship is set to open this spring. Newmark will also assist Vornado in developing the Moynihan Retail Corridor, the primary commercial hub of Moynihan Train Hall.
The retail corridor is central to Vornado’s $2.5 billion Penn District project, a reimagination of the area surrounding Penn Station as a dynamic, mixed-use neighborhood with world-class office space and public amenities, anchored by the world’s largest transportation hub.
Over the past decade, Vornado has redeveloped more than five million square feet of Class A office space, created more than 300,000 square feet of public plazas, and developed 1.1 million square feet of new retail across its Penn District properties.
The area is now home to a wide range of retailers, including more than 70 curated food and beverage purveyors. Plaza 33, the newly-landscaped pedestrian square on West 33rd Street between Seventh and Eighth Avenues, also features its own assortment of standout restaurants, including the Dynamo Room, Bar Primi, Blue Ribbon Sushi & Steak, and Roberta’s.
Vornado also led the expansion and revamp of the Long Island Rail Road concourse in Penn Station, which now features a diverse mix of national and local dining and retail options.
The firm’s new venture with Newmark continues this approach, aiming to create a cohesive retail experience on both sides of Seventh Avenue between 33rd and 34th Streets. Over the past few years, Vornado has quietly acquired multiple parcels on the block, describing the existing structures as “junk retail,” according to the New York Post.
Plans call for the demolition of the current buildings on the east side first, followed by those on the west side. The existing tenants hold short-term leases.
The new storefronts will be arranged within three-level “retail boxes,” and are intended for actual retailers rather than restaurants or fast-food outlets. Demolition is scheduled to begin later this year, with completion expected in 2027.
“Through our redevelopment of the Penn District, we have thoughtfully curated a diverse blend of local and nationally owned restaurants, cafes and shops that offer something for all workers, residents, commuters and visitors who experience the neighborhood on a daily basis,” Glen Weiss, executive vice president and co-head of real estate at Vornado, said.
“We have methodically remade the Penn District as a 24/7 neighborhood for every occasion and every taste.”
In 2022, Gov. Kathy Hochul selected Vornado to help redevelop the area around Penn Station. The plan called for the firm to transform 18 million square feet of the neighborhood, with tax revenue from the project funding the transit hub’s reconstruction. However, in February 2023, the project was paused due to pandemic-related market conditions.
The former Hotel Pennsylvania site, another major component of the project, has long been targeted for redevelopment by Vornado. The firm previously proposed turning the site into a temporary 80,000-square-foot outdoor venue, but that plan never materialized. Last fall, Vornado Chairman Steve Roth told the Post that he was in discussions with a major tenant to anchor a 1,000-foot-tall tower at the location.
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