IKEA opening new 80,000-square-foot ‘meeting point’ store in NYC

A popular Swedish furniture brand has announced plans to open a new location in New York City.

IKEA is putting down roots on Manhattan’s Fifth Avenue with an 80,000-square-foot “meeting point” store set to open as part of a larger real estate investment by the company’s investment arm, Ingka Group.

The smaller store is meant to give customers a more personable experience. Meeting points are locations where customers can go for extra support or guidance, especially when it comes to making vast or complicated purchases.

For reference, IKEA’s other two New York City locations — in Brooklyn and on Long Island — are considerably larger, clocking in at 350,000 square feet and 227,000 square feet, respectively.

The new “meeting point” store will be located within a 1 million-square-foot mixed-use building at 570 Fifth Avenue, which is a part of the extensive plan by Ingka Investments, the investments arm of Ingka Group — to “enhance its city center retail presence.”

“We are excited to share the news of this major investment that boosts our growth strategy across the U.S., a vital market for Ingka Group. Investing in Fifth Avenue goes beyond just growing our footprint; it’s about changing the way we engage with consumers and playing a part in creating strong, sustainable economies and business communities,” Peter van der Poel, managing director of Ingka Investments, said in a statement.

Located at the intersection of the Plaza and Grand Central Districts, this project will give New Yorkers access to necessary services and amenities. As a part of the group’s mission to adapt to the city environment, this building was chosen for its proximity to modes of public transportation, with Grand Central Station just a short walk away.

Extell Development Company, one of America’s leading development firms, will develop the Fifth Avenue investment into a new retail and office tower available to tenants by 2028.

“This next phase of our investment and expansion in the U.S. signals our commitment to bring IKEA closer to people in city centers. While we are in the very early stages of planning for the IKEA location, we can promise to deliver an experience that is full of inspiration and designed to meet the home furnishing dreams of the many New Yorkers,” Javier Quiñones, CEO & chief sustainability officer of IKEA U.S., said in the press release.

The Ingka Group is incorporating its sustainability goals into this project. While developing the building, the group wants to achieve a minimum LEED Gold certification and low-carbon operations.

Since 2019, the investment group has been opening IKEAs in cities across the globe, including places like Tokyo, Paris and London. However, Ingka Group and Extell Development Company have particularly high hopes for the New York City location.

“We have been working on assembling this project for almost two decades and Ingka Investments’ substantial commitment allows us to move forward with the construction and leasing of the best new office building in New York,” Gary Barnett, founder and chairman of Extell Development Company, said in the press release. This will be the first office tower to begin construction in the city post pandemic and it is a great sign of New York’s resilience. We are thankful to the Ingka Group team for their confidence in the project and New York’s future and look forward to a rewarding partnership. We are also thankful to our lenders, Meritz Securities and IGIS, for their continued commitment to the project.”

There are 473 IKEA stores in 63 countries and five territories.