IKEA Announces Acquisition of Space in SoHo to Further Expansion Strategy

October 1, 2025  by Karen Parrish in Business Strategy, Industry   

The acquisition will transform the existing retail property at 529 Broadway into a mixeduse building combining retail and office space. Following last year’s investment in 570 Fifth Avenue, this acquisition marks a significant moment in the IKEA urban retail expansion strategy.

This strategic acquisition brings IKEA to the center of SoHo, one of New York’s top retail destinations with over 12.2 million annual visitors. Ingka Investments will operate the entire building, comprising of five and half floors plus a lower level, totaling 53,000 square ft (4,924 sq m). Built in 2016, it is one of very few newly constructed properties in SoHo, designed to complement its historic surroundings while offering modern retail and office spaces. The IKEA store will occupy the first and second floors, with the lower level used for storage and other back-office facilities, covering approximately 25,000 sq ft (2,300 sq m). The upper four floors will be renovated for premium office use.

Peter van der Poel, Managing Director of Ingka Investments commented, “This marks Ingka Investments’ fourth acquisition of prime commercial real estate to support IKEA’s growth in the world’s leading cities. 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 the company’s omnichannel growth strategy to open new locations and maximize fulfilment in the US. Over the last years, IKEA US has rapidly expanded its physical footprint and strengthened digital and service capabilities to meet evolving customer needs. Recent new store openings in the US include in McAllen-Pharr and San Marcos, TX, Hunt Valley, MD, Cherry Hill, NJ, and Beaverton, OR, among others.

“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,” said Javier Quiñones, CEO & chief sustainability officer, IKEA U.S.

The investment aligns with Ingka Group’s broader strategy to adapt retail operations to urban growth patterns and evolving consumer preferences. Since 2019, Ingka Group has expanded its city center presence with new stores and innovative retail formats in major cities including Stockholm, London, Paris, Vienna, and Madrid. The new investment in 529 Broadway will be part of the real estate portfolio of Ingka Investments, which also includes other city center locations at 214 Oxford Street, London, UK; 570 Fifth Avenue, New York City, US; and Rue de Rivoli, Paris, France.

The building is being sold by Jeff Sutton, Wharton Properties.