Union Square Retail Is Doing Well These Days

Everything, including all those candles, is on deep discount, so hurry in.

According to transit data from MTA and Citi Bike, Union Square continues to be one of the City’s top destinations for employees, residents and visitors alike. While subway ridership remains low across the system, currently 20% of normal use, turnstile activity at the Union Square-14th Street station has tripled since April.

Similarly, bus ridership on the M14A/D busway is gaining momentum as average daily bus ridership has tripled since its low point in late March, reaching nearly 60% of pre-COVID daily ridership levels. For those visiting the district by Citi Bike, Broadway and 17th Street remains one of the City’s top 10 destination stations and ridership is up 45% since April. Another popular end station, Broadway and East 14th Street has experienced a 57% increase in use since April.

Other indicators are up too. Union Square’s public Wi-Fi use is up to 42% from 15% at the start of the pandemic, signaling an uptick in outdoor activity. The district’s active public realm can be attributed to the draw of the Greenmarket, the expansion of outdoor dining activating sidewalks and roadways, and the reopening of local business that attracts steady foot traffic across the district.

Union Square’s zip codes (10003, 10010 and 10011) make up 16% of Open Restaurants applications in Manhattan with the City’s highest number of applications located in 10003! Within Union Square-14th Street, nearly two thirds of businesses are conducting storefront activity and this number continues to grow as additional businesses and cultural institutions are making exciting plans to open their doors with events and programming as soon as it is safe to do so.

Permits have been filed to build a 12-story 29-unit building at 34 Union Square East. The proposed 124-foot-tall building will have 29,390 square feet of residential space and 1,555 square feet of commercial space. The site formerly held a TGIF restaurant and then the Spacious co-working space. It has been vacant for six years.

Union Square’s Competitive Edge

Exemplifying a “15-minute neighborhood,” Union Square offers a wealth of local amenities including dining, shopping, culture, entertainment, and healthcare, all within walking distance or a short bike-ride. A true mixed-use neighborhood, Union Square’s residents, offices, retail, and institutions help sustain a vibrant public realm, with recent visitor traffic reaching 98% of 2019 levels. Office leasing remains active, with over 450K sf of office space leased since January 2022 across tech, finance, publishing, and other sectors.

Union Square’s 126 new businesses are comprised of 54% eateries, 28% retail, and 18% neighborhood services such as health and wellness. USP and creative partners work year-round to bring unique cultural, food, and art experiences to the square. Events like the eight-week Summer in the Square series, Urbanspace’s Holiday Market, and seasonal pop-ups draw foot traffic and support local business and arts communities.

Union Square’s Rich Mix of Commercial Businesses

Union Square-14th Street is home to high-profile institutions and headquarters across a range of sectors including technology, media, finance, and design. This rich mix of commercial tenants continues to be a major draw. Additionally, Union Square is center of gravity for live entertainment, arts, and culture. According to the data platform Replica, spending on entertainment doubled between 2019 and 2023 and visits in the district rose by 10% between 2022 and 2023, reaching a high of 98% compared to August 2019, a 10% higher average than Midtown Manhattan.

“Industry leaders like Microsoft, Sequoia Capital, and Wellington Management are choosing Union Square for their newest offices. Coupled with strong leasing activity at the ground floor, these new tenancies demonstrate the area’s appeal across sectors,” says Julie Stein, Executive Director, Union Square Partnership. “National retailers including Parachute, Crate & Barrel and Target are joining local favorites ABC Carpet, Fishs Eddy and Design Within Reach to solidify Union Square as a retail destination for interior design and home essentials.”

USQ Thrives as a Job Center

Union Square is a job center with 144K+ workers across sectors. Top employers include Con Edison, Mount Sinai Downtown, New York University, and The New School. In the coming year, the addition of national brands, and new and renovated hotels in the area will bring additional retail and hospitality job opportunities. This summer, Microsoft moved into its new 150K sf office space at 122 Fifth Avenue. The building’s ground floor is nearly fully leased with prominent brands Allbirds, Parachute, and Pandora, and Levain Bakery planning to open in early 2024.

Zero Irving (124 East 14th Street) has made headlines for leasing nearly 100% of its office space to major tech and finance firms including GameChanger (25K sf) and Sequoia Capital (13K sf). Additionally, the 10K sf Urbanspace food hall introduced 13 vendors to the 14th Street food scene. Over 65K sf of retail space has been leased since January 2022 to national brands, such as Petco’s 30k sf flagship location on Union Square East, and NYC favorites such as Hex & Co board game café, Sweet Chick, and Kazunori.

“Because we’re located in the heart of the NYC tech community, Civic Hall @ Union Square’s six floors of state-of-the-art training and conference center space at the new Zero Irving building will drive sustainable pathways to high-tech jobs. Civic Hall will help supply the tech workforce and spur innovation for industry leaders, the community, the City of New York, and beyond.” Seema Shah, Executive Director, Civic Hall

New and Coming Soon’

Looking ahead into the Fall, we are excited to welcome Upright Citizens Brigade, Crate & Barrel, Saatva, Mission Ceviche, and many more businesses to the neighborhood.

• FÖRENA, a 50-unit luxury condominium development at 540 Sixth Avenue featuring 6K SF of new retail space for lease, finished construction in July 2023.

• NYU is relocating the Wagner Graduate School of Public Service to 105 East 17th Street in Fall 2024, bringing over 860 students and over 200 faculty to Union Square.

• Target will open a 33K SF store at 10 Union Square East, establishing over 75 new jobs and creating a retail anchor and local amenity for 14th Street.

According to this NY Times story:

The city’s Department of Transportation has declared its pedestrian plaza on the north side of Union Square, the fourth such major street revamping along Broadway, an out-and-out success, despite some early qualms from residents.

The redesign, implemented about a year ago, banned most cars from the block of Broadway north of Union Square, between 17th and 18th Streets, and closed a traffic lane on Union Square North. Tables and chairs were placed on the closed-off areas, and the neighborhood’s green market was able to expand.

The idea was to simplify a particularly tricky intersection where a confusing jumble of traffic signals and two-directional car lanes had resulted in a string of pedestrian injuries.

But the plan initially met stiff opposition from residents and businesses in the area, who complained about traffic jams on residential streets and problems for delivery trucks. A raucous community board meeting resulted in outcry and a mass walkout from protesters.

One year later, the city’s traffic engineers say that the improvements, for cars and pedestrians alike, have been palpable. (Here’s a pdf link to the report.) And no businesses or store managers appear to have registered complaints with local officials.

Radar samples found that about 12 percent of cars on Broadway between 20th and 19th Streets were now exceeding the 30 mile-per-hour speed limit, down from 28 percent of cars before the changes. Pedestrians can navigate a shorter crosswalk at the north end of Union Square, and they are waiting a shorter time for a “walk” signal.

Bicycle riders, who benefited from an additional protected lane along East 17th Street, also appear to be enjoying the changes: the agency found a 16 percent jump in cyclists in the area on weekdays, and a 33 percent increase on weekends.

Still, automobile drivers now appear to be avoiding the stretch of Broadway south of Madison Square, where the street was reduced to a single lane of car traffic and the direct car connection through Union Square was severed.

The number of cars traveling on that stretch has dropped by about half since the plaza was installed, the report said. Some of those drivers may be choosing to take Fifth Avenue or Park Avenue South for southbound trips through the area, slightly slowing those routes. The average speed of taxis along Fifth Avenue fell slightly after the plaza was installed, and southbound trips on Park Avenue South took longer.

But the Transportation Department noted that average speed along West 18th Street, where residents were most fearful of jam-ups, rose by about 14 percent, to 7 m.p.h. from 6 m.p.h. And average speeds on Park Avenue South stayed relatively unchanged.

The Union Square Partnership, the neighborhood’s economic development group, conducted a door-to-door survey of area businesses, and 60 percent of those who responded said they were happy with the new traffic configuration. About 35 percent had no opinion.

Still to be determined: some illegal left turns at the always-dangerous perpendicular intersection of Union Square West and 14th Street. (Initially, the agency had hoped to close off parts of Union Square West entirely, but some businesses objected.) The city said it was working on new street adjustments to tackle the problem.

Looks like Popeye’s Fried Chicken may take over the former Foot Locker site on East 14th St. just west of Union Square. Another new aroma for the neighborhood.