Target is expanding its presence in Queens with a 15-year lease for 135,000 square feet at the Rego Park Shopping Center. The agreement fills nearly all available space at the 600,000-square-foot open-air mall, bringing occupancy to 99%, according to its owner, Alexander’s—a firm partly controlled by Vornado Realty Trust.
The new store will take up nearly a quarter of the multilevel property at 61-35 Junction Boulevard. It joins anchor tenants like Costco, Burlington, and Best Buy, along with Marshalls, T.J. Maxx, Aldi, and Petco.
Financial details of the lease remain undisclosed. Retail space in Queens currently averages $42.47 per square foot. Once opened, the location will mark Target’s ninth in the borough.
Major retailers have frequently chosen the center for large-format stores. In 2020, home decor chain At Home leased 130,000 square feet for its first New York City location. The store was among many the company shuttered after filing for bankruptcy last year.
The Rego Park Shopping Center, also known as Rego Park II, differs from Rego Park I, a 338,000-square-foot complex nearby. Northwell Health acquired that property in March for $235.5 million. Though the healthcare provider hasn’t confirmed plans, the purchase may signal a future medical campus or outpatient facility.
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Vornado’s Steven Roth has led Alexander’s since the mid-1990s after a heated ownership dispute with Donald Trump. At the time, Trump held 27% of the company, while Roth owned 29%. Lenders later seized Trump’s stake and sold it to Roth following defaults on loans tied to his hotel and casino ventures.
Target’s last major New York City lease was in Long Island City, where it secured 31,000 square feet at Savanna’s One Court Square in 2021. That two-floor location remains one of the company’s smaller urban outposts.
The Rego Park agreement reflects a broader pattern of big-box retailers prioritizing large spaces in urban areas. It also shows the strength of well-positioned retail properties, despite challenges some chains face from evolving shopping habits.
Queens has maintained steady demand for retail space due to population growth and limited new construction. The borough’s retail vacancy rate sits at 4%, lower than the citywide average.
Alexander’s, which owns several key properties in the New York region, has actively leased space at the Rego Park center. The approach aims to sustain high occupancy in a competitive market.
For Target, the expansion supports its strategy to open more urban stores. The company has adjusted its model to fit smaller footprints while keeping a full product selection, moving away from its traditional suburban format.
The new store will also serve as a return hub for online orders, a growing segment of Target’s operations. The retailer has expanded same-day pickup and delivery services, which depend on strategically placed locations to meet demand.
Some analysts suggest the rise of e-commerce and shifting consumer behavior may pressure large-format stores to adapt. Still, the lease represents a success for both parties. Target gains a prime spot in a densely populated neighborhood, while Alexander’s secures a long-term tenant for a nearly full property.
Local officials have noted the deal’s potential to stabilize commercial rents in the area.