Ikea’s Ingka Group has acquired a prime office and retail building in Manhattan’s SoHo neighborhood, with plans to convert part of the space into a new city-format Ikea store.

The property, located at 529 Broadway, spans approximately 53,000sqft across six floors, including a lower level. 

Ingka will repurpose the first and second floors (around 25,000 sqft) for a new Ikea retail location, while the upper floors will be retained as office space. The basement level will support storage and operational needs.

The acquisition marks Ingka’s second major investment in Manhattan, following its city-format Ikea store at 570 Fifth Avenue, and underscores the retailer’s push into dense urban markets.

“Through property ownership, we can secure Ikea presence at the most important retail hubs while keeping affordability at the core,” said Peter van der Poel, MD of Ingka Investments. 

“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 purchase is part of a broader US$2.2 billion investment in omnichannel growth across the US, which includes new stores, upgraded fulfillment capabilities, and last-mile delivery services. 

Ingka has pursued similar real estate-led strategies in London, Paris, and Tokyo, converting centrally located office and commercial properties into mixed-use spaces anchored by Ikea.

The new Ikea location is expected to open following renovation and fit-out, with timelines to be announced.