Neiman Marcus is seeking to exit its Dallas headquarters less than two months after getting bought by luxury retail rival Saks.
Neiman Marcus sent its landlord a notice to terminate its office lease. The Dallas-based retailer opened the headquarters office on three floors within Cityplace Tower about two years ago with the help of more than $5 million in economic incentives from the city. The new headquarters was expected to become a hub for Neiman Marcus in what executives hoped would be a "magnet" rather than a "mandate" for its workforce to come to the office, space that was expected to offer up to 800 employees a flexible space to work, executives said when they opened the property.
Now, Neiman Marcus has given its landlord, Dallas-based NexPoint, a notice to terminate its lease, an official with the property owner told CoStar News.
The parent of Saks Fifth Avenue acquired Neiman Marcus in a deal that closed in late December in a move creating a $7 billion real estate portfolio that left analysts wondering about the future of Neiman Marcus. In "conducting a review of site usage and lease agreements," Saks Global executives said they've made "the strategic decision to consolidate corporate office space" at its Brookfield offices in New York.
Neiman Marcus' New York hub is located at 5 Bryant Park in New York City. It was not immediately known if that landlord had also received a notice requesting to terminate a lease.
"With that, we will be closing the former-Neiman Marcus Group corporate hubs [in] New York and Dallas," a Saks spokesperson told CoStar News in an email. "While the hub concept was not designed for consistent office use, average site usage for Dallas-based associates was only 11 days per year, or about 4%," the spokesperson said.
"We recognize the role Neiman Marcus plays in Dallas and we remain highly committed to serving our customers and to ensuring Neiman Marcus’ legacy there," the company said in an email.
The 2-year-old office space spans more than 82,000 square feet. It wasn't immediately clear how employees in Dallas would be impacted with the closure of the office.
The century-old retailer got its start in Dallas, with the city of Dallas stepping up in May 2022 with a $5.25 million economic incentive agreement to keep its luxury brand, as well as at least 1,400 employees in the city and its flagship store, from departing the area.
To qualify for the grant through a state incentive program meant to stimulate commercial or retail activity, Neiman Marcus had to have created 300 new jobs by the end of 2026, as well as keep its flagship store in downtown Dallas through the compliance period of Dec. 31, 2031. It is unclear how those plans may be impacted by the retailer seeking to exit its headquarters lease.
NexPoint's spokesperson said the property owner is hoping to engage with Neiman Marcus in a dialogue to find a solution that benefits all parties, including the city of Dallas, which offered up public support to keep the storied Dallas retailer in the city.
"We believe the strength and history of these partnerships should drive all parties toward a sound resolution," NexPoint's spokesperson said.