Neiman Marcus plans to shutter its Dallas office, but the building’s landlord is not convinced they can walk away easily.
After reviewing the property’s use and lease agreements, Saks Global decided to close the Dallas-based Neiman Marcus office after more than 100 years in the city. A spokesperson for Saks Global says the office space in CityPlace Tower near Uptown Dallas was only seeing Dallas-based associates visit an average of around 11 days per year.
News of the luxury retailer Dallas office closure comes less than a year after the chain merged with Saks Fifth Avenue, forming the newly named Saks Global. After purchasing Neiman Marcus for $2.65 billion, the new massive entity was forecast to generate around $10 billion in annual sales across all locations.
Now, the company says it’s consolidating its various brands into a single corporate headquarters in its Brookfield, New York offices. Former Neiman Marcus corporate hubs in New York City and the one in Dallas are closing.
Downtown Dallas’ flagship Neiman Marcus location is also closing its doors.
“We recognize the role Neiman Marcus plays in Dallas and we remain highly committed to serving our customers and to ensuring Neiman Marcus’ legacy there,” read a statement from Saks Global, per WFAA.
Amid the closure, NexPoint, the owner of the CityPlace building, told WFAA that they do not believe Neiman Marcus’ lease can be easily ended.
“While we received notice of termination from Neiman Marcus Group (NMG) for their lease at CityPlace Tower, we do not believe their lease allows for such termination… As such, we are looking to engage in conversations with the NMG team to identify a path forward,” read a statement from the company.
NexPoint said it hopes NGM adheres to the commitments it made when it leased Cityplace Tower, “commitments not only to us as the property owner but also to the city of Dallas, which provided meaningful support to NMG in its site selection process, allowing NMG to continue its more than 100-year history as a Dallas-based company.”
A question mark also remains around a city grant NMG obtained, according to a 2022 report in the Dallas Business Journal. The over $5 million economic development grant required that NMG maintain its headquarters in CityPlace Tower instead of moving to one of Dallas’ suburbs.
The agreement also mandated that Neiman Marcus maintain at least 1,100 full-time jobs in the city by the end of 2023, with average wages of $49 per hour. At least 35% of the employees were also required to reside in Dallas.
The City of Dallas is reportedly assessing the ongoing discussion between Neiman Marcus and NexPoint. Should a default occur, “the City has the right to seek to recapture the permitting fee reimbursements paid to date and [Neiman Marcus] would forfeit all remaining incentives,” read a statement from a city spokesperson, reported WFAA.