by Macy’s is facing significant downsizing across the United States, with plans to close nearly one-third of its stores by the end of 2026. However, the Macy’s location in Downtown Crossing, Boston, stands out as a likely exception.
A unique lease agreement and critical technological infrastructure in the building could protect this iconic store from closure.
What Happened
Macy’s announced a nationwide plan to close many underperforming stores to focus on its most profitable locations.
Despite this broad downsizing strategy, the Boston Downtown Crossing store may remain open.
The reason lies in a decades-old real estate deal and the building’s role as a technology hub.
Key Details
- In the late 1990s, Markley, a data center operator, purchased the top floor of Macy’s Boston building.
- Markley leased the lower three floors back to Macy’s under a long-term, low-rent agreement.
- The top floor hosts critical IT infrastructure for major Boston organizations such as:
- W.B. Mason (office supply company)
- Beth Israel Lahey Health (hospital network with 90 data cabinets)
- Boston Red Sox (for baseball analytics and digital fan engagement)
- Because of the importance of the technology housed upstairs, shutting down the entire building would disrupt key services.
Reactions and Statements
Whitney Gallivan, a real estate expert with Boston Realty Advisors, stated that closing this Macy’s would be a poor business decision. She highlighted the store’s favorable lease terms and prime location in Downtown Crossing as significant advantages. According to Gallivan:
“If their sales-to-rent ratio makes sense, it’s a no-brainer to keep the store open.”
Michael Nichols, President of the Downtown Boston Alliance, expressed confidence in the store’s future, noting indications that Macy’s may invest further in the Boston location. He mentioned:
“We have real confidence in this store,” hinting at possible renovations or upgrades instead of closure.
Investigation or What’s Next
Macy’s Boston store is expected to avoid closure, thanks largely to the unusual lease terms and the building’s technological importance. Industry insiders predict the company may focus on renovating or modernizing the store rather than shutting it down.
As Macy’s continues its national restructuring, the Boston location’s fate could serve as a model for how strategic real estate and local market dynamics influence corporate decisions.
FAQs
Q1: Why is Macy’s closing many stores nationwide?
A1: Macy’s aims to streamline operations and concentrate on its most profitable stores amid a challenging retail environment.
Q2: What makes the Boston Macy’s store unique?
A2: A long-term, low-rent lease agreement combined with vital technology infrastructure upstairs protects the store from closure.
Q3: Which companies use the data center in the Macy’s building?
A3: Major clients include W.B. Mason, Beth Israel Lahey Health, and the Boston Red Sox.
Q4: Is Macy’s planning to renovate the Boston store?
A4: While not officially confirmed, experts and local leaders suggest renovations or upgrades are likely.
Q5: How does this story impact Macy’s future in Boston?
A5: It signals a potentially strong future for the Boston location, differentiating it from other Macy’s stores facing closure.
Summary / Final Takeaway
Despite Macy’s nationwide downsizing plans, the Boston Downtown Crossing store is poised to survive due to a unique 1990s lease deal and the building’s critical role in Boston’s tech and health infrastructure.
Experts predict that instead of closing, Macy’s may invest in renovating this key location, giving the store a hopeful future in an evolving retail landscape.
