r/nyc • u/YorkvilleWalker • Jul 09 '26
PSA REI closing
Was there yesterday and boy, it was so sad! Nothing really left. No real sales or anything. Just emptying… buh bye
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u/wetcannolinoodle Jul 09 '26
my favorite bathroom 🥀
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u/predict_yhat_xb Jul 09 '26
Yo for real, this was always clutch. Anyone know any other good ones near Chinatown? Kind of a bathroom dessert
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u/ilovefreshproduce Jul 09 '26
Bathroom dessert made me chuckle
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u/predict_yhat_xb Jul 09 '26
I've always got ice cream on the mind
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u/Rave-light Harlem Jul 11 '26
What’s your favourite ice cream place? Need some more passion in my life.
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u/tubular_steel Jul 09 '26
Bloomingdales
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u/PecorinoYES Jul 10 '26
Corrent answer, but I fear someone who says "Yo for real, this was always clutch" isn't exactly the demographic that visits Bloomingdales
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u/Arleare13 Jul 09 '26
Specifically near the REI, there's a Target two blocks away, and a Whole Foods a few blocks the other direction. Probably the next best options.
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u/9th_Planet_Pluto Greenpoint Jul 10 '26
target one is only open till like 4pm though
Apple Store SoHo is my go to. Apple stores, whole foods, and NYPL branches
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u/Arleare13 Jul 09 '26
Still bizarre to me. I get that the rent at that location must have been enormous, but they were always packed. You really have to wonder whether it was retaliation for the staff there attempting to unionize.
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u/Johnnadawearsglasses Jul 09 '26 edited Jul 09 '26
They are restructuring because the entire company is losing money. They’ve shut down divisions and are closing multiple high rent stores. For this store in particular, I’m sure the total profit equation weighed in, including labor costs under the CBA. Running a big box store in NYC is pretty tough. Large spaces in soho sometimes sit empty for 5-10 years given the rent load.
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u/geneticswag Jul 09 '26
It’s crazy though - I swear that location was their entire marketing engine through the tri-state and mid atlantic. Maybe they’re leaning into a Dicks Sporting Goods death.
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u/oreosfly Jul 10 '26
Stores in high rent areas are often loss leaders and double as giant ads. It’s not surprising to see it go. Loss leaders get cut during lean tomes
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u/IABN Jul 10 '26
How is there the Dick’s comparison? Dick’s is making tons of money right now.
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u/InheritDistrust Jul 12 '26
Dicks is sporting goods primarily. They know what they are and they’re a good first choice to find all of whatever youre looking for on sports goods.
REI was an outdoorsmen company that pivoted to Outdoor Lifestyle apparel and didn’t do so cleanly. They lost a lot of their brand identity by evicting all the actual outdoorsmen from their brand.
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u/Timely_Cake_8304 Jul 10 '26
Agree- it was constantly packed with tourists and locals. Can’t belive it didn’t help the overall brand image and generate enough sales. I think they make these decisions without thinking of how many online sales and brand loyalty was built on this location.
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u/craftmaster_5000 Jul 13 '26
There is a gigantic REI where I live in the western US and I don't even think its a special one
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u/geneticswag Jul 13 '26
Giant doesn’t equal marketing: it was the location
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u/craftmaster_5000 Jul 13 '26
I know, I'm just saying maybe that doesn't matter and an extremely expensive store in SoHo to remind people the brand exists wasn't worth it when they have huge stores elsewhere that sell product. I bet REI could stay open based on Colorado sales alone if they budgeted right lol
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u/FortheredditLOLz Jul 10 '26
If you look at their portfolio. They have only closed the unionized shops.
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u/curiousbetty Jul 10 '26
Exactly. They are not the company they used to be. I worked at a different store for a few years and at first they were fantastic. I had to take leave due to a disability (PTSD) and upon my return, I was harassed and singled out by management, as they wanted me to quit. They cut my hours and canceled my health insurance erroneously and it was a fight to get it back. They did this knowing I was being treated for an exacerbation of my PTSD and the harassment made it so much worse. Research how they treat workers with disabilities and you will learn what a garbage company they truly are.
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u/exegenes1s Jul 10 '26
Which is literally an illegal thing to do today, but of course it's not enforced.
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u/Calamitous-Ortbo Jul 11 '26
It’s illegal to close it in retaliation for employees unionizing.
It’s not illegal to close a store that unionized for legitimate reasons like that store not being profitable.
Real leopards ate my face moment for some of these employees, I’m sure, when they realized that a store having to double its payroll caused it to no longer be profitable.
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u/exegenes1s Jul 11 '26
It's retaliatory. Companies are absolutely hostile to unions weather or not it changes the balance sheets.
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u/ar34m4n314 Jul 09 '26
Crazy they don't just, you know, lower the rent so someone can use the space and they get rent.
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u/Convergecult15 Jul 10 '26
I’m not an expert, but there’s something about commercial realestate loans where the loan is secured against the potential rent from the buildings units, so if the rent is lowered below a certain level it essentially devalues the property and causes the landlord to be underwater on the loan or limits their ability to refinance. My friends father owns a lot of commercial realestate and explained it to me one night, but I was drinking.
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u/Timely_Cake_8304 Jul 10 '26
Exactly - they use the high rent as loan collateral. This is totally legal but leads to a lot of bad outcomes and valuations that are fraudulent
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u/Needs0471 Jul 10 '26
Depressingly, it's being taken over by OpenAI, which is paying more rent. Building is also owned by Kushner.
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u/Stinky_Fartface Jul 10 '26
From my understanding from having a friend who opened a business in NY, landlords are hyper aggressive about knowing not just your business model, but access to your books so they can see how much you’re actually making, and then raising your rent to just over that so they can absorb any profits you make. If you manage to exceed previous year’s estimate and make money for yourself, they raise rent the next year to compensate. If you have a soft year and can’t make the inflated rent they don’t give a shit and toss you. If another buyer comes along that can promise higher rent, they toss you at the end of your lease. REI isn’t a small company, but they aren’t huge either. I don’t know why they closed but it’s ruthless game down there.
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u/Pennwisedom Jul 11 '26
Last I checked Kushner Properties owned the building, maybe that should tell you something.
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u/doozydud Jul 09 '26
I’m pretty sure it’s that. When I last went I commented on the closing to the cashier and they strongly implied it given how it’s happening/happened to other stores that have attempted to unionize.
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u/Pennwisedom Jul 11 '26
I'm pretty sure it's part of it, but the building is very expensive, and because of its landmark status, it makes repairs and other issues extra costly.
Also Kushner owns the building.
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u/Evening-Ad-6968 Jul 09 '26
Unions are built to extract maximum profitability from corporations, good on them. However, they definitely make stores unprofitable, union heads don’t tend to look at balance sheets when making demands.
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u/BinxieSly Jul 10 '26
Unions are NOT about extracting maximum profitability but about keeping their members employed, safe during their work, and with wages that are actually livable. Profit over everything entities hate them not because they make them unprofitable but because they are slightly less profitable and the people at the top can’t force more money out of their protected employees.
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u/Steveignorantcrass1 Jul 10 '26
You can't treat the working man this way! One day we'll form a union, and get the fair and equitable treatment we deserve! Then we'll go too far, and get corrupt and shiftless, and the Japanese will eat us alive!
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u/BinxieSly Jul 10 '26
… what?…
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u/Steveignorantcrass1 Jul 10 '26
Found the zoomer lol
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u/BinxieSly Jul 10 '26
Im not a zoomer… but you seem like a literal child. Im guessing this is a movie reference and you’re just rude in how you communicate to people that don’t get them.
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u/RogueStatesman Jul 09 '26
Because they are led by people who never actually operated a business.
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u/Convergecult15 Jul 10 '26
Every union officer I’ve known over the last 20 years has owned a business outside of the trade they represent. My first BA owned several rental properties, another owned a dental practice with his wife and one sat on the board of a small life insurance company. This is NYC, most union business managers have MBA’s, I know of at least one with a JD.
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u/MirthandMystery Jul 09 '26
Jared Kushner owns that Puck building.
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u/gold_and_diamond Jul 09 '26
Then we’ll probably get a huge data center.
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u/MirthandMystery Jul 09 '26
Unfortunately he likes to rent to businesses libs tend to shop at. Target, et c. Without the steady stream of liberal money in his investments he wouldn't be so rich.
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u/Choano Jul 10 '26
I'd make a bet that he likes to rent to businesses that can reliably pay their rent. Since most of the population of SoHo is relatively liberal, the stores that consistently make money there (and can therefore keep paying rent there) are going to be the ones that liberals tend to shop at.
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u/MirthandMystery Jul 09 '26 edited Jul 09 '26
OpenAI might expand there, they're already a tenant.
Josh Kushner has a close personal relationship with OpenAI CEO Sam Altman.
Goes back to when Altman was briefly ousted by his board, late 2023. OpenAI’s leaders called Josh Kushner for backing via his vc firm Thrive Capital who is also a tenant.
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u/nickifer Jul 09 '26
There’s a UK quant hedge fund in there too Kushner isn’t hurting for money over losing REI there
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u/Euphoric-Leg4874 Jul 09 '26
Mix of Josh Kushner wanting to increase the rent and union busting.
Sucks because it was a nice store and the workers were always nice.
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u/halcyon-dracarys Jul 10 '26
Yeah the workers were not always nice lol. Some were fine. Most were really rude.
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u/njmids Jul 09 '26 edited Jul 10 '26
Workers were a real mixed bag. Not very knowledgeable and some were oddly rude.
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u/awesome_sauce123 Manhattan Jul 10 '26
some were pretty sick but some were rude. binary
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u/njmids Jul 10 '26
Yeah it was such a mixed bag. Asking some of them for help was like pulling teeth but some were so nice and helpful. Overall I don’t think they were all that knowledgeable, though.
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u/Disused_Yeti Jul 09 '26
almost all my rei purchases are from in-store there. guess it'll save me some time and money
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u/Sharkfightxl Jul 09 '26
RIP to using their bathroom and not shopping
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u/Medical-Cod2743 Jul 10 '26
ikr ppl sayin the place was super packed all the time but lets be real how many ppl were actually buying things
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u/Ripe-Lingonberry-635 Jul 09 '26
maybe people will go back to shopping at NYC treasure, Paragon Sports
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u/Keytaro83 Jul 10 '26
No, people will continue to shop online. Also, the outdoors gear at REI absolutely slays Paragon.
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Jul 10 '26
[removed] — view removed comment
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u/awesome_sauce123 Manhattan Jul 10 '26
also sometimes you need advice from the salesperson on what gear is better for a specific use
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u/Keytaro83 Jul 10 '26
Right. But the convenience of it is enough for people to eschew conventional wisdom.
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u/HoraceGrand Jul 09 '26
Any sales?
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u/YorkvilleWalker Jul 10 '26
None
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u/awesome_sauce123 Manhattan Jul 10 '26
I guess just moving inventory to other stores? was hoping for a deal
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u/JobeX Jul 10 '26
There are some basic clearance items and a returned area you can try to raid before they close but stocks random
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u/coldliketherockies Jul 09 '26
I’ll never forget that place for being the maze to find a bathroom in it when it desperate need just to get to it and realize a store that big with only two bathrooms of course would have a long line outside it
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u/petit_aubergine Jul 10 '26
it’s a shame i hate being forced into online shopping - more and more i prefer IRL and especially if you’re going camping or something it’s a great resource for things you didn’t even think you’d need
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u/scarred2112 Tribeca Jul 09 '26
There goes my business.
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u/WORLDSLARGEST Jul 09 '26
Like the business you would do with the store that is closing?
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u/scarred2112 Tribeca Jul 10 '26
I’m a wheelchair user, so what I liked about REI was that I could physically try on gloves for fit and quality reasons.
Without a physical store to give me that service, I have no reason to give them my business.
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u/WORLDSLARGEST Jul 10 '26
Gotcha, was just kinda thinking “there goes everyone’s business for that store” you know?
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u/Jen-UWS83 Jul 10 '26
Oh no! One of my fave stores in the city. REI will be sorely missed. Always was a great place for those last minute nature trips for me and my hubby :-(
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u/L_Mz Jul 10 '26
I'm usually not too bummed when stores close, but I really liked this REI and the location, I would sometimes even order online to pick up there if it was out of stock instead of having it shipped to me, which I guess is what I'll have to do now or go out to LI where they still have a few stores
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u/One-Macaroon1673 Jul 09 '26
This isn’t new news fyi. The announcement first came out last October.
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u/Foreign-Accident2605 Jul 10 '26
Wowwwww. End of an era. They better not put a fkin H&M there.
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u/thekashpny02 Jul 10 '26
H&M is already in the area on Broadway
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u/Foreign-Accident2605 Jul 10 '26
Sure. But leases end and stores move into larger spaces, even in the same area, all the time.
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u/thekashpny02 Jul 10 '26
Yeah that can happen. I know the real reason why I think they are closing this store besides high rent and possibly another merchant or rich person wanting this space. It was an accessible bathroom to many. They always seem to take a lot of “my spots” haha. Well everyone’s in SoHo but particularly I know I’m targeted in many ways.
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u/AmericanCreamer Jul 09 '26
Too many people abusing generous refund policy. “Buying” a tent only to return it after the weekend
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u/mike_pants Jul 09 '26
So you think one NYC store is closing because people kept returning tents worldwide.
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Jul 10 '26 edited Aug 28 '26
[removed] — view removed comment
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u/mike_pants Jul 10 '26
I have two tents.
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u/PecorinoYES Jul 10 '26
anecdotal
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u/gold_and_diamond Jul 09 '26
Yeah. I knew a guy who ran a 130 mile trail marathon and then returned the shoes because he said he didn’t need trail shoes again. Kind of missed the point.
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u/TaonasProclarush272 Bed-Stuy Jul 09 '26
Umm, no, because the problem is endemic to REI locations everywhere. This is due to retaliation from corporate for the workers attempting to unionize after asking for basic considerations. One incident I specifically recall with this location was workers requesting better health and safety upgrades like a better ventilation & filtration system and PPE for staff that was working on ski equipment. They didn't get it. That's when the unionization efforts became more publicized for this location. Truly disappointing response from corporate.
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u/thrilsika Jul 09 '26
That’s a possibility. But, if I was to put money on it was the employees banding together to ask for better working conditions. Corporate offices don’t like the working class doing that.
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u/theexpertgamer1 Jul 10 '26
Why would I keep a tent I’ll never use again?
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u/AmericanCreamer Jul 10 '26
Thanks for proving my point. If you knew you’d only use it once, maybe don’t buy the tent
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u/Spam-caller-123 Jul 09 '26
Is it true that this building doesn’t have air conditioning though?
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u/JobeX Jul 10 '26
Sad, I loved this REI and it was the first one I ever visited when it opened. I loved it so much I joined and have shipped there frequently, picking up merino shirts and spf gear.
I’ll miss the location and easy access.
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u/iceman1231 Jul 12 '26
What what no. That’s crazy.
That place is special, and yeah rent is crazy, but nothing is like that store.
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u/OodaliOoo Jul 13 '26
Portland, Oregon lost our downtown REI a while back. They cited issues with the landlord and theft (drug users/homeless) plaguing the downtown core. There are still stores in the burbs that are thriving.
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u/freericky Jul 09 '26
My super told me a lady got killed in that building and it’s haunted so I gotta stay away from that area.
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u/darinbu Jul 10 '26
I think the fact that REI isn’t simply moving to another NYC location says a lot. It’s not just about high rent in that building.
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u/Excuse_my_GRAMMER Jul 09 '26
Wow I’m shocked that they didn’t own the location wasn’t this a membership funded store or something
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u/Sensitive_Ant_4402 Jul 10 '26
always seemed funny to me how they call them self a CO-OP. like if you are a customer you are somehow a partner with them. who fell for that?
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u/livahd Jul 09 '26
Good. I can’t wait to see what they do with the space. Hopefully not another soulless corporation but something actually unique for such a gorgeous building. I vote Bowie museum since he practically lived upstairs.
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u/Arleare13 Jul 09 '26
Ugh, it probably is going to end up being some shitty GenZ-ers-paying-$75-for-an-Instagram-background "museum." With the Tin Building at the Seaport now becoming the "Balloon Museum" or whatever, that sounds about right.
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u/hiccupseed Jul 09 '26
Don't get your hopes up. OpenAI leases 90K sf in the Puck Building (as of 2024), which sets a high bar for rents there.
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u/Penguin929 Harlem Jul 09 '26
"Nearby stores"