Ingka Investments, the investment arm of Ingka Group, the world's largest IKEA retailer, has acquired a prime retail and office property at 529 Broadway in Manhattan's SoHo district, marking a significant step in IKEA's urban retail expansion strategy.
© IKEA
The 53,000-square-foot (4,924 sq m) mixed-use building, constructed in 2016, will house a two-storey IKEA store occupying the first and second floors, while the lower level will accommodate storage and back-office facilities covering approximately 25,000 sq ft (2,300 sq m). The upper four floors will be renovated for premium office use.
"This marks Ingka Investments' fourth acquisition of prime commercial real estate to support IKEA's growth in the world's leading cities," said Peter van der Poel, Managing Director of Ingka Investments. "Through property ownership, we can secure IKEA presence at the most important retail hubs while keeping affordability at the core. This new location in New York City allows us to continue offering inspiring and accessible home furnishing solutions to everyone, regardless of their budget."
The SoHo acquisition is part of Ingka Group's $2.2 billion investment in its US omnichannel growth strategy, designed to open new locations and maximise fulfilment. Recent store openings in the United States include McAllen-Pharr and San Marcos, TX; Hunt Valley, MD; Cherry Hill, NJ; and Beaverton, OR.
Javier Quiñones, CEO & Chief Sustainability Officer, IKEA U.S., commented: "We are boldly reimagining how we reach and serve our customers, and this new store in the heart of New York City is another step for IKEA to be closer to the many. As we celebrate 40 years in the U.S., this investment on one of New York's busiest retail corners underscores our commitment to accessibility and meeting customers where they are."
The investment aligns with Ingka Group's strategy to adapt retail operations to urban growth patterns and evolving consumer preferences. Since 2019, the group has expanded city-centre store formats in major cities including Stockholm, London, Paris, Vienna, and Madrid. The new property will join the existing Ingka Investments real estate portfolio, which includes locations such as 214 Oxford Street, London; 570 Fifth Avenue, New York City; and Rue de Rivoli, Paris.
The building is being acquired from Jeff Sutton of Wharton Properties, further cementing IKEA's presence in one of New York's most visited retail districts, attracting more than 12.2 million annual visitors.
