Macy’s Inc. (NYSE: M) has revealed plans to build an office building above its biggest store in New York and modernize the surrounding area.
It was recently announced that Macy’s would build an office tower adjacent to its largest store. A coronavirus outbreak forced the company to change plans, leading to the reconstruction of adjacent territory on a large scale. The company’s management stated that Macy’s would invest $ 235 million in the project to reconstruct the infrastructure of Herald Square.
Specifically, the retailer plans to upgrade the existing entrances to the Herald Square subway station, add wider doors, and offer more accessible parking. As part of this plan, Macy proposes creating a car-free zone inside the existing space. A recently added nearly 140,000 square meter office tower and planned infrastructure improvements are expected to create 16,290 jobs, resulting in annual production of $ 4.29 billion.
Macy’s Inc. (M) may see an opportunity to grow since it will be near an office complex with thousands of employees and a pedestrian zone of attraction. People are expected to return to their offices later this year, which will lead to a rebound in demand for office space in Manhattan and increase the value of the company’s planned office tower. It is also expected that Macy’s will sell the project immediately to the developer, which will allow the debt to be reduced.
In the last trading session, Macy’s Inc. (M) gained 5.97% to close at $19.16. There were 29.3 million shares traded, a large increase over its daily average of 20.57 million shares over 100 days. The price range for the company’s shares was between $18.00 and $19.29. M’s stock has gained 9.17% in the last five days and 14.18% over the last month. Additionally, the price to cash flow ratio stood at 26.91.