RETAIL
RENTS SURGE TO PRE-9/11 LEVELS SAYS REBNY REPORT;
57TH STREET CORRIDOR RENTS UP 55% FROM LAST YEAR
-- Average Rents Up 10% Overall; Available Retail Space Down 19% --
NEW YORK, NY, Apr. 28, 2004 – Reaching pre-9/11 levels, asking rents for retail space in Manhattan soared in the first quarter of 2004. Manhattan’s 57th Street corridor showed the largest increase – up 55% from this time last year – with average asking rents on 57th Street between Fifth Avenue and Park Avenue hitting $850 per-square-foot, according to The Real Estate Board of New York’s (REBNY) Spring Retail Report.
Overall, average asking rents in Manhattan for retail space rose 10% to $97 per-square-foot. Available retail space in Manhattan declined 19%, with more than 2.7 million square feet being absorbed. Downtown specifically saw available space drop 35%, demonstrating retailers’ renewed interest in the area.
“This report is great news for the retail market in Manhattan,” said Steven Spinola, REBNY President. “While the numbers have been slowly rising since 9/11, this is the first time we’ve seen double digit increases in asking rents in several areas for more than two years. This is surely a sign that retailers have renewed faith in Manhattan.”
The Retail Report included the following findings:
• Asking rents for ground floor space in the primary retail corridors has risen 32% to $284 from a year ago.
• Asking rents for retail space on the East Side increased by 21% to $155; Midtown asking rents also increased by 12%.
• Midtown South, which includes SoHo, and the West Side both showed increases of 7%.
• The 5th Avenue corridor (49th to 59th Sts.) average asking rents increased 11%, to $717 compared to Spring 2003.
• The upper end of the Madison Avenue asking rent range reached $850, a 17% increase from a year ago.
• Asking rents for retail space of 1,000 square feet or less in Manhattan rose 12%. This square foot range has the fewest number of stores available.
The Retail Report is a semi-annual, comprehensive collection of retail market data from a broad cross-section of the city’s top real estate firms. The report presents data on available retail space by geographic area and focuses on the ground floor space of major retail streets.
About REBNY Retail Report
The REBNY Retail Report is issued twice a year in the spring and fall by
the REBNY Stores Committee. Findings are reviewed by an advisory group
that distills and analyzes the data. The report provides comprehensive
information about available retail space and asking rents in Manhattan.
The report presents all available data on retail space by geographic area
and focuses on the ground floor space on the major retail streets. It provides
an objective and reliable source for discerning market trends.
Space information has been provided on a confidential basis by REBNY member firms including: Abrams Realty Corp, CBRE Retail Services NY Tri-State Region, Madison HGCD, LLC, Massey Knakal, Murray Hill Properties, Newmark New Spectrum Retail, LLC, PBS Realty, Robert K. Futterman & Associates, LLC, Rockrose Development Corp., Rose Associates, Inc., Silverstein Properties, Inc., Staubach Retail Services, The Lansco Corp., Walker, Malloy & Co., Inc., and Winick Realty Group.
About REBNY
As the oldest and most influential real estate trade association in New York
City, The Real Estate Board of New York 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.
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** For a copy of the REBNY Spring Retail Report, please contact Cara Marino
at 212-889-0808.