In the latest example of how the art world is reordering itself in response to challenging gallery economics, three major players are joining forces to sell artwork on the secondary market (as opposed to sales of new work).

On Monday, Pace Gallery, with Emmanuel Di Donna of Di Donna Galleries and David Schrader, an executive vice president and chairman of global private sales at Sotheby’s, announced the start of Pace Di Donna Schrader Galleries — or PDS — a boutique enterprise that aims to operate on a global scale out of a new space on the Upper East Side.

“There are no great, great secondary galleries anymore,” Marc Glimcher, the chief executive of Pace, said in a recent interview, while acknowledging that Acquavella was one of the few exceptions. He added that the new gallery would try to emulate the “the David Schrader effect,” where a gallery “can distribute itself over a pre-existing network.”

Given the steep cost of operating brick-and-mortar spaces as well as of participating in multiple art fairs, several galleries have closed, merged or become virtual. Pace itself is carrying the expense of its new gallery in Chelsea, just a few years into its 20-year lease. “The art business is desperately in need of evolution — everybody knows that,” Glimcher said. “When a business gets this crammed up between expanding operating expenses and narrowing margins, it’s time for an evolution. It’s usually a time for consolidation as well, and this is that for sure.”

PDS is to begin operations early next year, to open its physical space in summer 2026 (in a location that has yet to be determined), and present a historical exhibition next fall (whose subject was not yet announced).

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