MAC Cosmetics announced a new lease for a 5,300‑square‑foot space at 579 Broadway, marking a relocation from its former address on 506 Broadway in the SoHo district.
Brand Secures Ground‑Floor Spot in Historic Cast‑Iron Building
The lease covers the ground floor and a lower level of the five‑story mixed‑use property, a landmarked cast‑iron structure built in 1860. The building, which totals 58,000 square feet, also houses apartments on its upper floors. The landlord, identified in property records as Lord Shivas Properties, an entity linked to the Mistry family, will receive an asking rent of $500 per square foot.
Representatives from the landlord were Newmark agents Ariel Schuster and Logan Ryan, while Cushman & Wakefield’s Mike O’Neill, Jason Greenstone and Taylor Reynolds acted for the brand. The current retail tenant, British fashion label Allsaints, will vacate early next year to make way for the new store.
According to the filing, the space will be the brand’s fourth Manhattan location, joining three existing stores listed on its website. The company did not comment on the terms beyond what the lease filing disclosed.
Manhattan Retail Market Shows Record Tightness
Manhattan’s overall retail market is experiencing historically low vacancy rates. Cushman & Wakefield reported availability dropping to 10.4 percent in the second quarter, the lowest level on record. SoHo’s own vacancy fell to its smallest figure since 2012, a decline of 20.8 percent from the 2021 peak.
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The district led all submarkets with 22 signed leases in the first half of the year, according to the same research firm. Over the past five years, SoHo and Third Avenue have seen the strongest rent appreciation, rising about 43 percent and 42 percent, respectively.
Beauty retailers are a notable part of this demand surge. Earlier this summer, Ulta Beauty signed a $400 million lease at Jeff Sutton’s 1551 Broadway project in Times Square, while Sephora has been acquiring additional space in the East Village.
These moves suggest a pattern: high‑end cosmetics chains are targeting dense urban corridors where foot traffic and brand visibility remain strong despite rising costs. The brand’s expansion aligns with the broader trend of luxury retailers seeking premium locations as part of a post‑pandemic recovery strategy.
While the lease details are public, neither the brand nor the landlord offered additional remarks when approached for comment.
The shift also reflects the competitive pressure on landlords to fill premium spaces quickly. With vacancy at a historic low, owners are less likely to negotiate deep concessions, and tenants must weigh the cost against the potential sales lift from prime street exposure.
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In the middle of this busy market, the brand’s decision to move into a building that also serves residential tenants may create a mixed‑use dynamic that benefits both shoppers and locals. Such arrangements can boost street‑level activity, which in turn supports surrounding businesses that rely on pedestrian traffic.
From a broader perspective, the concentration of beauty retailers in the area shows how consumer spending on cosmetics remains resilient, even as other retail segments face headwinds. The sector’s growth helps sustain higher rent levels and keeps vacancy numbers depressed, reinforcing the cycle of demand and price increases.
Industry observers note that the brand’s new location could serve as a flagship for its urban strategy, offering a larger footprint than many of its existing stores. The space’s size allows for expanded product displays, interactive experiences, and possibly new service offerings that cater to the neighborhood’s affluent clientele.
As the lease takes effect early next year, the building’s mixed‑use nature will likely bring a blend of shoppers and residents into close proximity. The brand’s presence may also influence future leasing decisions by other high‑profile retailers looking to capitalize on the district’s limited availability.
