Ikea’s plans to set up its first Upstate New York store in Destiny USA is seen as a big win not only for the struggling mall, but also for Central New York. The home furnishings giant is expected to serve as a magnet for drawing economic activity to Syracuse.
The Swedish retailer known for its stylish and affordable furniture is moving into the former At Home space on Destiny’s west end.
Mayor Ben Walsh said the mall depends on strong anchors to survive. Destiny has lost several tenants in recent years, and is struggling to pay lenders.
“This brings a whole new definition to anchor tenant," he said. "It is going to bolster the mall’s operations hopefully give confidence to other retailers that are considering coming to coming to Syracuse and coming to the mall. Ultimately they still need to work out their finances with their lenders, but I see a clear willingness to do that.”
Walsh said IKEA has been on Destiny’s radar for years, but conversations ramped up in recent months. He spoke with IKEA to assure them that they had a willing partner in the city despite the uncertainty surrounding the mall.
Director of business development for the city Bianca Hill said adding a tenant of this caliber increases visibility.
"Understanding that this underutilized vacant space is now going to have this huge anchor tenant is really nice to know," Hill said. "Neighboring tenants will definitely benefit from the increased foot traffic.”
She said it also creates a stronger connection with other adjacent high traffic areas like the Inner Harbor and the CNY Regional Market. Hill said the Micron project was clearly a factor in IKEA’s decision to locate in Syracuse.
“Just knowing that not only with our existing population and community how great it would be to have a store like that, but also just understanding the additional population that will be able to take advantage of that as well," Hill said.
IKEA plans to open its signature showroom and marketplace later this year. Destiny USA did not respond to an interview request.
