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On October 6 1923, Steloff moved the store to its second location at 51 West 47th Street. GBM not only promoted such publications through its stock and advertising, it also served as agent for many struggling magazines and subsidized the cost of printing.Its famous cast-iron sign, designed by John Held, Jr., depicting three men fishing and Steloff's phrase "Wise Men Fish Here," was hung outside, and she dropped "Art" from the name of the store, becoming simply Gotham Book Mart. During the mid-1920s, GBM began hosting lectures in the yard behind the store.Famous honorees at GBM included Dylan Thomas, Christopher Morley, Kenneth Patchen, Katherine Anne Porter, W. Auden, Lawrence Durrell, William Carols Williams, Anaïs Nin, and Marianne Moore.

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There she met George Mischke, head of the rare books department, where she later transferred departments to work.With the books the couple purchased abroad, Gotham was beginning to outgrow its space.In addition, Gothams building was slated for demolition in order to make room for the Knickerbocker Hotel.Between 19, Steloff learned the book trade working in various New York bookstores, including Bretano's.

In mid-December 1919, Steloff spotted a one-room basement storefront for rent in the heart of the theatre district.

Inspired by the Sunwise Turn bookshop owned by Mary Mobray Clark and Madge Jennison, Steloff explored the idea of opening her own bookstore.