Want To Rent In The Marshall Field's Building? Macy's Says It's A Possibility
By Kate Shepherd in News on Nov 12, 2015 11:26PM
Macy's is looking for new ways to make money, and redeveloping its iconic State Street store (the iconic former home of Marshall Field's) is under consideration, according to Crain's.
Department stores are struggling to compete in today's changing market and while the State Street remains a tourist destination, it is not immune to problems. The Cincinnati-based chain has been in discussions about a possible conversion of the mostly unused top floors of the State Street store to office space, residences or other ventures, sources told Crain's. There are many things Macy's could do: sell the upper floors, enter into a joint venture with a developer or sell the entire property and rent back the retail floors.
It's not the end of an era. No matter what, a successful Macy's store will remain in the building, Macy's spokeswoman Andrea Schwartz told Crain's in a statement. The chain has redeveloped space in its Seattle and Brooklyn stores for revenue.
The department store giant is currently exploring potential joint ventures "or other deal structures with third parties" for its real estate in Chicago, Manhattan, San Francisco and Minneapolis. The changes would be completed "in a manner that maintains a robust Macy's retail store presence while also bringing alternative use into those buildings," Crain's reported that the chain said in the statement.
There's plenty of underused space in the 12-story, nearly nearly 1.3 million-square-foot store, and capitalizing on it is not a bad idea. The ninth floor is only used for the store's annual flower show and the three stories about that are Macy's North Central regional offices and storage space.
The idea is not unprecedented in today's uncertain retail market. Sears Holdings and Hudson's Bay, which owns major chains Lord & Taylor and Saks Fifth Avenue, have sold stores and leased back the space.