Neiman Marcus has exited leases in two high-profile office towers in downtown Dallas
Neiman Marcus used bankruptcy proceedings to cancel two large long-term office rentals in downtown Dallas that were no longer needed.
The retailer had leased offices in the Renaissance Tower at 1201 Elm Street since October 2003 and at 1700 Pacific Avenue since 2004. Neiman Marcus occupied five floors in the Renaissance Tower and two floors in the 1700 Pacific.
Both rooms have been vacated and the retailer has completed its restructuring, which began with a filing with the bankruptcy court in May. It has cut $ 4 billion in debt and closed businesses, and now has more than $ 3 billion in annual sales.
The 56-story Renaissance Tower became the largest foreclosure petition in the Dallas area last week since the COVID-19 pandemic began. The building is owned by a New York-based investment group.
Olymbec USA, based in Memphis, owns 1700 Pacific.
Neiman Marcus’ decision is a high profile exit from office space in the central business district, which nowadays, as in all city centers, has fewer employees due to the pandemic. Other companies may be considering giving up their office space as working from home or some kind of hybrid planning have emerged as major trends in the workplace.
It is too early to say whether employers and companies will make current labor agreements permanent once Americans are vaccinated against COVID-19. And it’s not easy to terminate a rental agreement. Neiman Marcus was able to do this without legal recourse, as the bankruptcy process allows companies to reject leases as part of a Chapter 11 reorganization.
The downtown Neiman Marcus store at 1618 Main Street also has executive offices, and most of the retailer’s employees have been working from home since March unless they are needed in a facility.
“We have moved to a so-called ‘results-only work environment’ or ROWE. This new way of working enables our employees to work with their executives to determine a work schedule and location that is most productive for them and the company, ”said Amber Seikaly, vice president of corporate communications for the retailer.
The company’s staff is now smaller as the company has fewer full-line stores and the last-call business has been reduced to a handful of stores selling clearance items from full-line stores.
Before the dismantling, the retailer had around 1,500 employees in the three buildings in the city center.
Neiman Marcus’ flagship store in downtown Dallas was built in 1914 after a 1907 fire destroyed the original.
The nine-story downtown store is a versatile space in which the company offers more options than the casual shopper sees on floors 1 through 4 as well as in the Zodiac Room restaurant and the Michael Flores salon on floors 6.
The building has executive offices on Levels 5 and 7 through 9. The store’s retail floors have also been used for staff meetings and reconfigured for fundraising and fashion shows.
The building with the exterior of George Dahl is listed on the National Register of Historic Places. Neiman Marcus moved from Elm Street to the corner of Main / Ervay in 1914, where the original store, which opened in 1907, was destroyed by fire. The building has been expanded several times, taking up both more space on Commerce Street and more levels. In 1983 two levels were added, making nine stories.
The business was an anchor for the revitalization of the inner city. Neiman Marcus also has office space in his Irving warehouse.
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