Carnegie Hospitality Signs Lease at 7 Penn Plaza
The restaurant group plans to open a new dining location in the Penn District in November 2026.
Updated on Oct. 22, 2026 in Dining Out
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Carnegie Hospitality signed a 10-year lease in September 2026 for a 5,609-square-foot space at 7 Penn Plaza. The new restaurant is scheduled to open in the Penn District in November 2026.
Why it matters
The move fills a vacancy left by the departure of Smashburger, which is shifting its focus to other locations in the New York metropolitan area. Carnegie Hospitality currently operates nine other sites throughout New York City.
The 10-year lease covers 5,609 square feet, divided into a 3,110-square-foot ground floor, an 865-square-foot mezzanine, and a 1,634-square-foot basement. The average retail rent in the surrounding Herald Square area was $412 per square foot.
The players
Carnegie Hospitality
This restaurant group operates nine locations in New York City, including Delos Greek Restaurant and Voco Roofbar.
Smashburger
This burger chain is a fast-casual dining brand that recently closed its location at 7 Penn Plaza.
The Feil Organization
This is a private, family-owned real estate investment, development, and management firm that owns 7 Penn Plaza.
Jeffrey Roseman
He is a real estate professional who represented Carnegie Hospitality during the lease negotiations.
Randall Briskin
He is a representative who acted on behalf of the Feil Organization to secure the new lease agreement.
The details
Carnegie Hospitality took over the lease formerly held by Smashburger, which retains one remaining Manhattan location at 804 Lexington Avenue. Jeffrey Roseman represented Carnegie Hospitality in the deal, while Randall Briskin represented the landlord, the Feil Organization.
Timeline
Average retail rents in Herald Square were $412 per square foot during the first half of 2026.
Carnegie Hospitality signed the lease for 7 Penn Plaza in September 2026.
Carnegie Diner is scheduled to open in November 2026.
Culture Shift
The arrival of Carnegie Hospitality signals a transition in the Penn District as property owners seek to curate a more diverse dining environment for commuters and residents. This follows a pattern set by the Penn District commercial revitalization trend which aims to attract high-traffic restaurant operators.
Local diners will have a new restaurant option in the Penn District once the space opens in late 2026. This transition replaces a previous fast-casual chain with a new establishment as part of the ongoing changes in the neighborhood.
The takeaway
The transformation of 7 Penn Plaza highlights how high-demand areas like the Penn District continue to evolve through commercial lease turnover. Local residents and commuters should expect a different dining experience when the new space launches in 2026.
What happens next
Carnegie Diner is scheduled to open its doors in the Penn District in November 2026.
Further reading
For more on the latest restaurant openings, visit the New York City Dining Out section.
Source note: This article includes information reported by Commercial Observer.
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