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| Train Delayed? Relax With a Bolivian Pastry and Bubble Tea | Train Delayed? Relax With a Bolivian Pastry and Bubble Tea |
| (about 4 hours later) | |
| Crowded, loud and gritty are qualities frequently associated with New York’s subway system. | Crowded, loud and gritty are qualities frequently associated with New York’s subway system. |
| A place to relax with an ethnic dish and a cocktail, and perhaps browse a boutique shop? Not so much. | A place to relax with an ethnic dish and a cocktail, and perhaps browse a boutique shop? Not so much. |
| But if a retail overhaul by the Metropolitan Transportation Authority succeeds, those kinds of leisure activities will become more common. In an effort to raise extra revenue needed to help improve service, the authority is seeking to replace the discount-clothing stores and doughnut chains that line its underground passageways with trendy food halls and upscale shops. | But if a retail overhaul by the Metropolitan Transportation Authority succeeds, those kinds of leisure activities will become more common. In an effort to raise extra revenue needed to help improve service, the authority is seeking to replace the discount-clothing stores and doughnut chains that line its underground passageways with trendy food halls and upscale shops. |
| The M.T.A. hopes to replicate the success of a three-year-old market at its Columbus Circle station, but the proposal has skeptics. Some question the logic of replacing any tenants when they can be hard to find in a challenging retail climate, while others say that stores will struggle until train delays are remedied. | The M.T.A. hopes to replicate the success of a three-year-old market at its Columbus Circle station, but the proposal has skeptics. Some question the logic of replacing any tenants when they can be hard to find in a challenging retail climate, while others say that stores will struggle until train delays are remedied. |
| And equating the A train platform with a restaurant destination may be a stretch. | And equating the A train platform with a restaurant destination may be a stretch. |
| “The stench and the extremely high temperatures and the rats make it hard to associate the subway with food,” said Peter Braus, a managing principal with Lee and Associates, a commercial brokerage firm in New York. “But there is something that retailers love, which is bodies.” | “The stench and the extremely high temperatures and the rats make it hard to associate the subway with food,” said Peter Braus, a managing principal with Lee and Associates, a commercial brokerage firm in New York. “But there is something that retailers love, which is bodies.” |
| The plan, announced earlier this year, is likely to have the biggest effect in Midtown Manhattan, where a handful of high-traffic stations are set for makeovers, including the 42nd Street-Port Authority Bus Terminal stop for A, C and E trains. | The plan, announced earlier this year, is likely to have the biggest effect in Midtown Manhattan, where a handful of high-traffic stations are set for makeovers, including the 42nd Street-Port Authority Bus Terminal stop for A, C and E trains. |
| Featuring a long corridor with low ceilings lined with pipes, the station offers 8,800 square feet across 14 stalls, many measuring less than 500 square feet. | Featuring a long corridor with low ceilings lined with pipes, the station offers 8,800 square feet across 14 stalls, many measuring less than 500 square feet. |
| Under the plan, a single landlord would lease the entire corridor, which for years housed tenants like a barber, a florist and clothing stores. The stalls would then be sublet to an “attractive mix” of stores and restaurants, according to the plan, which was hatched to coincide with expiring leases. Most of the stores are vacant; remaining tenants will have to request leases with the new developer. | Under the plan, a single landlord would lease the entire corridor, which for years housed tenants like a barber, a florist and clothing stores. The stalls would then be sublet to an “attractive mix” of stores and restaurants, according to the plan, which was hatched to coincide with expiring leases. Most of the stores are vacant; remaining tenants will have to request leases with the new developer. |
| The developer would also be responsible for adding vents, water lines and a trash room. | The developer would also be responsible for adding vents, water lines and a trash room. |
| Rent has not been set for the corridor, which would be leased for at least 20 years. It will be determined after hearing from developers, who will submit bids next month. The authority will not simply go with the highest bidder, officials said, but will favor the right look and feel instead. | |
| Most of the tenants at the station under the Port Authority Bus Terminal were paying less than $200 a square foot annually, according to public data, with more than half shelling out less than $100 a square foot a year. | Most of the tenants at the station under the Port Authority Bus Terminal were paying less than $200 a square foot annually, according to public data, with more than half shelling out less than $100 a square foot a year. |
| Rents are usually lower for subway stores than for their street-level counterparts because the stores are often beyond the turnstiles, so customers have to pay subway fare just to drop in. But the rents at the Port Authority Bus Terminal station shops are still well below market rate, brokers say. | Rents are usually lower for subway stores than for their street-level counterparts because the stores are often beyond the turnstiles, so customers have to pay subway fare just to drop in. But the rents at the Port Authority Bus Terminal station shops are still well below market rate, brokers say. |
| Indeed, landlords ask more than $350 a square foot for aboveground storefronts in the immediate area. And in bustling Times Square, a block to the east, rents are far steeper, about $1,900 a square foot, brokers say. | |
| The transit authority could use the extra money that renting out the spaces would bring in. It is seeking to invest $40 billion in repairs and improvements in the next decade, including upgrades to subway tracks and signals to make trains more punctual. Approved bond financing worth $25 billion, backed by new congestion-pricing tolls, and sales and real-estate taxes are likely to help alleviate the financial burden. | The transit authority could use the extra money that renting out the spaces would bring in. It is seeking to invest $40 billion in repairs and improvements in the next decade, including upgrades to subway tracks and signals to make trains more punctual. Approved bond financing worth $25 billion, backed by new congestion-pricing tolls, and sales and real-estate taxes are likely to help alleviate the financial burden. |
| But the authority, seeking to create new revenue sources, seems willing to embrace smaller-bore efforts, too. Vending machines selling toothpaste, deodorant, ear plugs and even colorful salads in jars have been popping up in stations. And the authority has been selling discarded train parts like seats, doors and maps. In August, a straphangers’ handle was available on its website for $25. | But the authority, seeking to create new revenue sources, seems willing to embrace smaller-bore efforts, too. Vending machines selling toothpaste, deodorant, ear plugs and even colorful salads in jars have been popping up in stations. And the authority has been selling discarded train parts like seats, doors and maps. In August, a straphangers’ handle was available on its website for $25. |
| The redevelopment of the retail spaces may not create a windfall overnight, said Janno Lieber, the M.T.A.’s chief development officer. He joined the authority in 2017 to oversee infrastructure projects after playing a major role in the reconstruction of the World Trade Center for Silverstein Properties. But the new options will be appreciated, he said. | The redevelopment of the retail spaces may not create a windfall overnight, said Janno Lieber, the M.T.A.’s chief development officer. He joined the authority in 2017 to oversee infrastructure projects after playing a major role in the reconstruction of the World Trade Center for Silverstein Properties. But the new options will be appreciated, he said. |
| “We owe it to New Yorkers to create a dynamic subway environment,” Mr. Lieber said. “This is the right time for lots of reasons.” | “We owe it to New Yorkers to create a dynamic subway environment,” Mr. Lieber said. “This is the right time for lots of reasons.” |
| Adding restaurants, however tiny, to the underground corridors would be a stark change for the city. Even though lunch counters once dotted subway stations, including some on platforms, they mostly disappeared by the 1980s, when the subway system was plagued by low ridership and perceived as unsafe and unsanitary. | Adding restaurants, however tiny, to the underground corridors would be a stark change for the city. Even though lunch counters once dotted subway stations, including some on platforms, they mostly disappeared by the 1980s, when the subway system was plagued by low ridership and perceived as unsafe and unsanitary. |
| For the subway stations that will be redeveloped, the authority is also relaxing its rules on alcohol sales, though the beverages cannot be carried outside restaurants. | For the subway stations that will be redeveloped, the authority is also relaxing its rules on alcohol sales, though the beverages cannot be carried outside restaurants. |
| The station-as-destination concept is not without precedent. Fulton Center, a multilevel hub in Lower Manhattan that ties together more than a half-dozen subway lines, was redesigned in 2014 as a $1.4 billion transit and retail complex lit by a domed skylight. | |
| On a smaller scale is TurnStyle, the Columbus Circle market in a below-grade passageway, which offers 30 businesses, including 19 with food. Privately financed with $14.5 million, the 27,000-square-foot TurnStyle offers savory Bolivian pastries, Japanese rice cakes, bowls of ramen, homemade pasta and bubble tea. | On a smaller scale is TurnStyle, the Columbus Circle market in a below-grade passageway, which offers 30 businesses, including 19 with food. Privately financed with $14.5 million, the 27,000-square-foot TurnStyle offers savory Bolivian pastries, Japanese rice cakes, bowls of ramen, homemade pasta and bubble tea. |
| Since opening in 2016, the market has had a 90 percent occupancy rate, said Susan E. Fine, a principal at Fine Development Partnerships, the site’s developer. “It was unpleasant, not air-conditioned and ugly before,” Ms. Fine said, “and now it’s like a city street.” | Since opening in 2016, the market has had a 90 percent occupancy rate, said Susan E. Fine, a principal at Fine Development Partnerships, the site’s developer. “It was unpleasant, not air-conditioned and ugly before,” Ms. Fine said, “and now it’s like a city street.” |
| Formerly a director of real estate for the M.T.A., Ms. Fine was also involved with bolstering shopping options at Grand Central Terminal, which doubled its retail space in a sweeping renovation in 1998. Average rent for the Grand Central shops and restaurants is about $460 a square foot annually, according to the authority, which owns the terminal, and in August, all but one of its 95 spaces was rented. | Formerly a director of real estate for the M.T.A., Ms. Fine was also involved with bolstering shopping options at Grand Central Terminal, which doubled its retail space in a sweeping renovation in 1998. Average rent for the Grand Central shops and restaurants is about $460 a square foot annually, according to the authority, which owns the terminal, and in August, all but one of its 95 spaces was rented. |
| TurnStyle and similar ventures are making a smart bet by emphasizing cuisine, said Gene Spiegelman, a vice chairman of Ripco Real Estate, a retail-focused brokerage firm. Restaurant deals represent about 40 percent of all new retail leases in New York, Mr. Spiegelman said, up from about 25 percent about a decade ago. | TurnStyle and similar ventures are making a smart bet by emphasizing cuisine, said Gene Spiegelman, a vice chairman of Ripco Real Estate, a retail-focused brokerage firm. Restaurant deals represent about 40 percent of all new retail leases in New York, Mr. Spiegelman said, up from about 25 percent about a decade ago. |
| Privatizing subway retail is another positive trend, he said. “It makes better sense, because the private sector is much more effective,” he added. | Privatizing subway retail is another positive trend, he said. “It makes better sense, because the private sector is much more effective,” he added. |
| After choosing a developer for the 42nd Street-Port Authority Bus Terminal station, the transportation authority will solicit bids for two other hubs, Times Square and Rockefeller Center. | After choosing a developer for the 42nd Street-Port Authority Bus Terminal station, the transportation authority will solicit bids for two other hubs, Times Square and Rockefeller Center. |
| The authority has focused some attention outside of Manhattan, too. This year, it awarded the rights to upgrade the Coney Island-Stillwell Avenue station in Brooklyn to CAI Foods, a division of the Zamperla Group, which owns the nearby Luna Park amusement park. | The authority has focused some attention outside of Manhattan, too. This year, it awarded the rights to upgrade the Coney Island-Stillwell Avenue station in Brooklyn to CAI Foods, a division of the Zamperla Group, which owns the nearby Luna Park amusement park. |
| For a starting rent of $450,000, CAI will redevelop nine of the station’s 11 retail spaces, which now have chains like Subway and Dunkin’. Among their replacements will be Rcade, a bar and restaurant with video games, according to the M.T.A., which said it had received 20 bids for the site. | |
| Subway retail shops offer their own benefits and drawbacks, said Lou Moskowitz, who owns Record Mart, a music store inside the Times Square station that his father, Jesse Moskowitz, founded in the Union Square station in 1958. | Subway retail shops offer their own benefits and drawbacks, said Lou Moskowitz, who owns Record Mart, a music store inside the Times Square station that his father, Jesse Moskowitz, founded in the Union Square station in 1958. |
| The store, with 700 square feet, will be offered as part of the upcoming Times Square redevelopment, meaning Mr. Moskowitz could lose his space. | The store, with 700 square feet, will be offered as part of the upcoming Times Square redevelopment, meaning Mr. Moskowitz could lose his space. |
| The heat can be oppressive, he said as he stood by an industrial-scale air-conditioner that showed a temperature of 95 degrees. But he described satisfaction when rushing commuters pause to stop in. “It’s been great because we’re so central,” Mr. Moskowitz said. |