Swedish furniture giant IKEA is once again attempting to expand into Manhattan, this time choosing to open a small store in the SoHo district. The company has invested $213 million to purchase a six-story building at 529 Broadway, planning to convert two floors into a 25,000 square feet display and retail space.
This is not IKEA’s first foray into Manhattan. In 2019, its “Planning Studio” on Third Avenue closed after just three years; and the large branch in Rego Park, Queens also shut down in less than two years. Currently, the massive flagship store in the Red Hook neighborhood of Brooklyn, with an area of over 336,000 square feet, remains the only full-scale IKEA flagship store in the five boroughs of New York City. The SoHo store is seen as a compromise: more convenient than Red Hook, but much smaller than the warehouse-style stores in the suburbs.
Peter van der Poel, Managing Director of Ingka Investments, IKEA’s parent company, stated in a press release, “This is Ingka’s fourth prime real estate investment in global cities to support IKEA’s development. The new store in New York will continue to provide inspiration and affordable home solutions for all consumers.”
In addition to the SoHo store, IKEA also plans to open another larger branch in Manhattan. In July 2024, the company announced that it will occupy 570 Fifth Avenue – a new building developed by Extell, set to open in 2028 with a size of 80,000 square feet spread across two underground levels and featuring a dedicated entrance.