The market for retail real estate in New York city is holding up against a national slowdown, as lower rents tempt retailers
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The market for retail real estate in New York city is holding up against a national slowdown, as lower rents tempt retailers.
Average asking rents for available ground floor units were lower in 14 of Manhattan’s top 17 retail corridors compared to spring 2016 according to the Real Estate Board of New York.
“The overall decline in Manhattan average asking rents is attributable to a natural correction from a robust retail market,” said John Banks, REBNY President. “Activity, driven by continued retail demand, amenable landlords, and New York City’s strong market fundamentals, is countering the effect of difficult national retail conditions, some of which is the impact of e-commerce retail on brick and mortar stores.”
The interest among retailers has also been raised due to increased concessions from landlords and more creative and flexible deal structures.
The areas where retailers are being tempted include Broadway between Houston St. and Broome St. in SoHo. Here rent is 1% down from a year ago to an average $812 per square foot. Madison Avenue between 57th St. and 72nd St. has dropped 12% year-over-year to $1,446 psf.
Rents are rising though for retail units in the Flatiron District’s Fifth Avenue corridor between 14th St. and 23rd St. with a jump of 18% year-over-year to $456 psf.
Despite a 2% drop in rent, the Midtown section of Fifth Avenue between 49th St. and 59th St. is stable year-over-year $3,324 psf.
Average asking rents for available ground floor units were lower in 14 of Manhattan’s top 17 retail corridors compared to spring 2016 according to the Real Estate Board of New York.
“The overall decline in Manhattan average asking rents is attributable to a natural correction from a robust retail market,” said John Banks, REBNY President. “Activity, driven by continued retail demand, amenable landlords, and New York City’s strong market fundamentals, is countering the effect of difficult national retail conditions, some of which is the impact of e-commerce retail on brick and mortar stores.”
The interest among retailers has also been raised due to increased concessions from landlords and more creative and flexible deal structures.
The areas where retailers are being tempted include Broadway between Houston St. and Broome St. in SoHo. Here rent is 1% down from a year ago to an average $812 per square foot. Madison Avenue between 57th St. and 72nd St. has dropped 12% year-over-year to $1,446 psf.
Rents are rising though for retail units in the Flatiron District’s Fifth Avenue corridor between 14th St. and 23rd St. with a jump of 18% year-over-year to $456 psf.
Despite a 2% drop in rent, the Midtown section of Fifth Avenue between 49th St. and 59th St. is stable year-over-year $3,324 psf.
