Introduction to Union Square
Union Square Park and its surroundings lost much of their good-times juice after popular restaurant Coffee Shop on Union Square West closed in 2018 and Blue Water Grill followed it into history in 2019. It never felt quite the same even with big-name retailers on East 14th Street and the ever-popular Greenmarket still drawing crowds.
The Revival of Union Square
But now the park’s on a retail- and restaurant-leasing roll. As reported by the Union Square Partnership, storefronts around the park are 82% occupied, a 68% jump over the last quarter of 2024.
Pop-up shops are filling vacant ground-floor spaces around Union Square Park, including Mets House at 1 Union Square West.
Major new tenants either in place or opening in the next few months include restaurants Seahorse, Flight Club and Smashy.
New Additions to the Area
A huge outpost of popular steakhouse STK is coming to the corner of 200 Park Avenue South, which was dark since Elizabeth Arden Red Door Spa shuttered in 2020. Pop-up shops are filling long-vacant ground-floor spaces, including Mets House at 1 Union Square West. Upper floors have been snatched up by Fred Astaire Dance Studio at 857 Broadway and nutrition-care provider Nourish at 853 Broadway.
Increase in Office Workers
The area has seen 28% more visits by office workers since the first quarter of 2024, according to the Partnership.
Although the organization’s report didn’t mention it, a significant morale-booster was the dismantling late last year of the scaffolding at Barnes & Noble at 33 E. 17th St. at the park’s northern end, which had darkened the city’s largest B&N for years.
Office Leasing and Remaining Dark Storefronts
And on the office front, the relatively small Union Square submarket lags. Cushman & Wakefield reports its 110,000 square feet of leasing in the first quarter was slightly below the five-year average.
A huge outpost of popular steakhouse STK will also hit Union Square.
Even so, at least 20 storefronts remain dark from 700 to over 9,000 square feet, especially along Union Square East.
Residential Conversions
You’re too late to buy any of the loft-like condo apartments at the Armorie, the residential conversion by Adellco of a former publishing house at 114 E. 25th St. that we wrote about a few months ago.
A single, unidentified purchaser (who won’t likely remain anonymous for long) snatched up all 20 units and the ground-floor commercial space for $71 million.
We’re told the purchase came just days after the apartments were publicly listed for sale — and in the midst of Wall Street turbulence over tariffs.
Conclusion
In conclusion, Union Square is experiencing a significant resurgence in retail and restaurant leases, with new tenants and pop-up shops filling vacant spaces. The area has also seen an increase in office workers, and the dismantling of scaffolding at Barnes & Noble has boosted morale. While some storefronts remain dark, the overall trend is positive, and the area is expected to continue to grow and develop in the coming months.
FAQs
Q: What is happening to Union Square?
A: Union Square is experiencing a resurgence in retail and restaurant leases, with new tenants and pop-up shops filling vacant spaces.
Q: What new tenants are coming to the area?
A: New tenants include restaurants Seahorse, Flight Club, and Smashy, as well as a huge outpost of popular steakhouse STK.
Q: Is the area still struggling with dark storefronts?
A: Yes, at least 20 storefronts remain dark from 700 to over 9,000 square feet, especially along Union Square East.
Q: What is happening to the office market in the area?
A: The office market is lagging, with leasing slightly below the five-year average, but the area has seen a 28% increase in office workers since the first quarter of 2024.
