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After eight years of vacancy, a prime ground-floor retail corner at 701 Seventh Avenue in Times Square is being activated through a strategic pop-up. The space, adjacent to the Edition Times Square Hotel, will host a Warner Brothers' "Central Perk" coffee shop experience from the TV show Friends. Based on our experience assessment, this temporary installation is a calculated move by property managers GreenBarn Investment Group and Newbond Holdings to demonstrate the location's potential to long-term retail tenants, who had previously been deterred by the unit's unusual shape and obstructions.
The glass-wrapped corner at West 47th Street and Seventh Avenue is situated in one of the world's most heavily trafficked areas. Despite this, the approximately 3,000-square-foot space faced significant leasing challenges. The property's unusual curved shape made traditional store layouts difficult. Furthermore, the entrance was frequently obscured by as many as six giant hot dog stands, which created visibility and accessibility issues. These factors, combined with the high expectations for a landmark address, led retailers and food merchants to shun the space, leaving it empty since the building, also known as 20 Times Square, opened.
The current strategy, led by leasing agent Cushman & Wakefield, involves using a high-profile pop-up to overcome previous leasing obstacles. A pop-up is a temporary retail installation designed to create buzz and test a location's market viability. The "Friends" Central Perk experience is an example of immersive retail, which blends entertainment with shopping and dining. The goal is to generate significant foot traffic and media attention, effectively rebranding the corner as a desirable destination. Steven Soutendijk of Cushman & Wakefield described it as a "one-of-a-kind opportunity for global brands looking to make a statement."
| Strategy Component | Expected Outcome |
|---|---|
| Themed Pop-Up Tenant | Generate foot traffic and positive publicity. |
| Short-Term Lease | Showcase the site's potential with minimal long-term risk. |
| Marketing Campaign | Attract interest from potential long-term tenants for the entire 49,000 sq ft of available retail space in the building. |
This case highlights the evolving nature of retail leasing in premier tourist districts like Times Square. The success of experiential and entertainment-driven tenants is becoming crucial. While the building is home to the successful Hershey's store, much of its other retail space on the second through fourth floors and basement has been vacant since the NFL Experience closed in 2018. The previous owner, Maefield, lost the property to foreclosure—a legal process where a lender takes control of a property due to loan default—partly due to the drain of lost rent. The new approach signals a pivot toward flexible, high-impact uses to stabilize valuable assets.
The key takeaway for commercial real estate observers is that even the most prominent locations require innovative leasing strategies when traditional models fail. The use of a pop-up to demonstrate viability is a tactical response to unique physical and market challenges. The property's managers are betting that proving the corner's potential with a well-known brand will finally secure a long-term tenant for the entire available retail space.
