Word on the street is that Union Square's mammoth Virgin Megastore is closing up shop sometime between now and February 2009. Billboard reports the space is "being offered by a real estate broker for 2009 availability. According to retail sources, New York-based Winick Realty is shopping the space and has sent out packages highlighting its features."
The 58,000 square-foot space is being offered together or subdivided and may become another retail space or (wait for it) luxury condos! The NY Sun has more info on the high rent potential. Currently Virgin pays around $100 per square foot, but future "retailers are expected to pay as much as $750 to $1,000 a square foot."
There is no word yet on if Virgin will open a new Megastore somewhere else in town, but the NY Post recently reported that the Times Square location may also be in trouble, saying, "Industry watchers say the sale would allow Related and Vornado - which are already Virgin's landlords at their Union Square and Times Square stores, respectively - to close the two stores where Virgin has long-term leases well below market rates." Looks like billionaire Branson's retail outlet isn't faring so well on the West Coast either.