New York City

Penn Station Power Play: Vornado Packs 34th Street Passage With Three Sidewalk Cafes

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Published on May 11, 2026
Penn Station Power Play: Vornado Packs 34th Street Passage With Three Sidewalk CafesSource: Google Street View

Vornado Realty Trust is looking to squeeze a little leisure into one of Midtown’s most frantic thoroughfares, with a plan for three sidewalk cafes in a covered passageway off West 34th Street near Penn Station. The compact dining spots are the latest move in the company’s yearslong push to recast the blocks around the station as the branded Penn District. Wider sidewalks, Plaza 33 and curated food vendors have already reshaped how people move through the area.

As reported by Crain's New York Business, the latest phase calls for three separate sidewalk cafe operations tucked into a passageway off West 34th Street. The outlet notes that the cafes are part of a broader round of street level retail and are framed as a way to give commuters and nearby office workers more places to sit, eat and kill a few minutes before the next train. The story credits C. J. Hughes for the reporting.

Where the cafes would sit

The planned cafes would line a passageway next to Vornado controlled properties on West 34th Street, a corridor the firm has been steadily reworking to tilt more toward pedestrians and retail. In its own Penn District materials, Vornado highlights new plazas, widened sidewalks and planned outdoor dining across several sites, including an Avra Estiatorio concept that is slated to come with substantial outdoor seating. Those details appear in the company’s public documents and investor notices, according to Vornado Realty Trust.

A bigger retail push behind the move

The sidewalk cafe plan slots neatly into a retail strategy Vornado has been pitching to investors and brokers as it remakes buildings and streets between 33rd and 34th streets. The company has tapped Newmark as exclusive leasing agent for the next round of Penn District retail and has told the market it expects to put roughly $2.5 billion into the district’s transformation. Industry coverage of that leasing campaign and its early tenant wins helps explain why additional ground level dining options are suddenly a priority, as outlined by Mann Report.

How outdoor dining will be approved

Any fresh tables and chairs outside Penn Station still have to clear City Hall. Outdoor dining in New York now runs under the permanent Dining Out NYC framework, which grew out of the Open Restaurants program launched during the pandemic and expanded where sidewalk and roadway seating can go, according to the City Council. Vornado’s specific plans will require municipal approvals and sign offs from agencies such as the Department of Transportation and the Department of City Planning before anything is built. The mayor’s office and the Council laid out the program’s rules and enabling legislation when they finalized it.

So far, Vornado has largely steered reporters to its Penn District presentations and leasing announcements rather than weighing in directly, and some coverage notes that the company often executes its bigger swings through broker channels. A recent industry write up also flagged related land deals and acquisitions tied to the Penn District, underscoring that plenty of pieces still hinge on private negotiations and city approvals before commuters see any new sidewalk seating, as reported by The Real Deal.