New York City's retail leasing market seeing renewed vibrancy as asking rents in primary shopping corridors--including Fifth Avenue, Madison Avenue, Broadway, SoHo--surging amid strong consumer interest, tourism boom: Real Estate Board of New York
May 12, 2014
– Tourism Boom Brings Asking Rent Increases on Coveted Corridors; Fifth Ave Rents Set New Record, Jump 16%
Strong consumer demand and a tourism boom in New York City led to rising retail rents along Manhattan's most coveted shopping corridors this spring, according to The Real Estate Board of New York's (REBNY's) Spring Retail Report. Fifth Avenue between 49th and 59th streets had the highest average ground floor asking rent among all primary shopping corridors citywide and set a new record at $3,550 per square foot, with rents increasing 16 percent compared to last year. The Times Square retail corridor also reached a new high with average ground floor asking rents climbing 11 percent over last year to $2,407 per square foot.
Other primary shopping corridors with significant ground floor asking rent increases this spring include:
Madison Avenue between 57th and 72nd streets where asking rents surged 24 percent to $1,643 per square foot after a period of store repositioning in that corridor.
Herald Square along West 34th Street, where rents increased 22 percent from last year to $883 per square foot.
Broadway in SoHo between Houston and Broome with average asking rents increasing 19 percent to $890 per square foot.
"New York City's retail leasing market is seeing renewed vibrancy this spring as asking rents in the primary shopping corridors including Fifth Avenue, Madison Avenue and Broadway in SoHo, among others, are surging amid strong consumer demand and the continuing tourism boom," said Steven Spinola, REBNY President. "Our retail advisory group made up of the city's leading retail brokers tells us that low interest rates and high demand among retail tenants is leading to a more vibrant and desirable tenant mix particularly along Fifth Avenue and Broadway. The trend is clearly a benefit to residents and visitors alike as it brings more shopping options."
Beyond the major retail corridors with heavy tourist foot traffic, the report found that retailer demand is more price sensitive and focused on the bottom line. For example, Third Avenue corridor retailers may take more time to commit to leases and other factors such as street/avenue frontage and ceiling height may affect the space's value as much as locational factors.
Overall average asking rent for retail space (ground floor and other) throughout Manhattan was $139 per square foot, up 20 percent since last spring.
REBNY's Retail report compiles data about asking rents for available space provided by a broad cross-section of the city's leading retail brokers. The report is compiled twice a year in the spring and fall.
To view the full report visit www.rebny.com.
About The Real Estate Board of New York
The Real Estate Board of New York is the city's leading real estate trade association with more than 15,000 members. REBNY represents major commercial and residential property owners and builders, brokers and managers, banks, financial service companies, utilities, attorneys, architects, contractors and other individuals and institutions professionally interested in the city's real estate. REBNY is involved in crucial municipal matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes and legislation. In addition, REBNY publishes reports providing indicators of market prices for both the residential and commercial sectors. Please visit us online at www.REBNY.com.
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Cara Gentile; Nicole Chin-Lyn
The Marino Organization