Nike Inc. has signed a 15-year lease covering seven floors and 69,214 square feet at 650 Fifth Avenue in Manhattan, according to SL Green Realty Corp. and its partner Jeff Sutton, which announced the lease signing on Thursday.
The lease comprises the building’s entire retail component.
Jeff Nichols, vice president of Nike’s Direct to Consumer business in North America, said, “We…look forward to continuing to bring consumers the very best of Nike in another new, unique brand experience store.”
Situated at West 52nd Street, 650 Fifth Avenue is a 36-story office building in the heart of the Plaza District.
Last month, Nike opened the doors to a new SoHo store. The five-story, 55,000-square-foot space at 529 Broadway is a multisport emporium with spaces devoted to running, basketball and soccer.
Nike SoHo represents what the company is calling “the Future of Sport Retail” to which active experience, or the ability to test-drive products in the store, and customer service are the top priorities.
“We do look at the store as our global debut of the Future of Sport Retail,” said Heidi O’Neill, Nike’s president of global direct to consumer. “But it’s been informed by everything we’ve done in the past.”
That was Nike’s sixth store in New York, making the future Fifth Avenue site the seventh. Its 57th Street Niketown location just celebrated its 20th anniversary today. Nike last quarter reported double-digit growth in the direct-to-consumer sector, representing 27 percent of total Nike brand revenue. For fiscal-year 2016, Nike’s direct to consumer business accounted for $7.9 billion.
Timed to the SoHo store opening is a new campaign titled NY Made, promoting Nike and New York with an outdoor and digital marketing campaign featuring Odell Beckham Jr., Victor Cruz, Serena Williams, Nas and Bella Hadid.
Fifth Avenue has become a hot spot for new activewear retailing with a megastore opened this week by Adidas, while Under Armour has inked a deal to open what it says will be “the single greatest retail store in the world” on the site of the former FAO Schwarz on Fifth Avenue and 58th Street sometime after 2018. Asics also is due to open a store on Fifth Avenue next spring.
SL Green Realty Corp., an S&P 500 company, holds interests in 125 Manhattan buildings totaling 46.6 million square feet.