Macy’s, one of the most well-known department stores in the United States, is going through big changes to stay strong in a tough retail market. The company is planning to shut down around one-third of its stores by the end of next year, according to The Boston Globe. This is part of a plan to simplify and focus on more profitable locations.
However, one special location in Downtown Crossing, Boston, may be saved—and the reason is quite surprising.
A Deal from the Past Could Save Macy’s
Back in the late 1990s, when the internet and technology world was booming, a company called Markley bought the top floor of the same building where Macy’s operates. Markley is a data center operator, and during that period, many businesses were looking for space to store large computer systems.
Markley kept the lower three floors for Macy’s, giving them a long-term lease with very low rent, something that’s not common today. That real estate deal, made over two decades ago, might be why Macy’s Boston store is likely to stay open.
What Makes the Top Floor So Special?
The top floor is filled with important computer infrastructure used by some of Boston’s biggest names. For example:
W.B. Mason, an office supply company, keeps most of its IT infrastructure there.
Beth Israel Lahey Health, a major hospital network, has 90 cabinets of data equipment in a private secured area.
Even the Boston Red Sox use Markley’s services for baseball analytics and digital fan engagement.
Because so many vital services depend on the technology hosted in that building, it’s not easy to shut the place down. And that may protect Macy’s store located right below.
Experts Think the Store Will Stay
Real estate expert Whitney Gallivan from Boston Realty Advisors says it would be a bad business move to close this particular store. According to her, Macy’s low rent deal and prime location in Downtown Crossing make it a valuable asset.
She added that Macy’s lease is much longer than usual, and because the rent is so low, the store can still make good profits. “If their sales-to-rent ratio makes sense,” she said, “it’s a no-brainer to keep the store open.”
There are also rumors that instead of closing the store, Macy’s might renovate or upgrade it.
Investment, Not Exit?
Michael Nichols, President of the Downtown Boston Alliance, also believes the store has a bright future. He said there are signs that Macy’s is planning to invest more in the Boston store. “We have real confidence in this store,” he said, adding that the location might even be getting enhanced support from Macy’s head office.
While Macy’s is closing many of its stores across the country, the Boston Downtown Crossing location may survive thanks to a smart property deal from the 1990s, low rent, and its importance to the tech and health infrastructure in the building. With experts predicting a potential makeover instead of a shutdown, the future of Macy’s in Boston looks more hopeful than ever.
This story shows that sometimes, past decisions and hidden factors—like a building’s upstairs tenants—can make a big difference in shaping the future of a business.