RETAIL RENTS SURGE IN PRIMARY RETAIL LOCATIONS
--Mad. Ave. Between 57th and 67th Sts. Avg. Asking Rents Increase 39%--
NEW YORK, NY, Nov. 19, 2003 – Average asking rents for available retail space in Manhattan surged in the last twelve months increasing to $92 per square foot, an 8.2% increase compared to average asking rents a year ago, according to The Real Estate Board of New York’s (REBNY) Fall Retail Report released today.
“While the increases in asking rents are positive by any measure, these numbers are more meaningful now, given the current state of the economy. The report demonstrates that retailers are willing to make an investment in Manhattan, and will pay top dollar for space in the most coveted retail corridors,” said Steven Spinola, REBNY President.
The Retail Report included the following findings:
• Average ground floor asking rents for all spotlighted retail corridors experienced increases of 35%, rising from $204 to $275.
• Madison Avenue between 57th and 67th Streets, one of the prime retail corridors, saw average ground floor space asking rents increase 39.3%, rising to $684 from $491.
• Fifth Avenue between 48th and 59th Streets, another premier retail area, saw a 22.6% increase in average asking rents for ground floor space, rising to $650 from $530.• The 57th Street corridor between Park Avenue and Fifth Avenue experienced a 23.3% increase in average ground floor asking rents, rising to $678 from $550.
• The East Side recorded the largest increase as average asking rents rose to $143, a 28.8% increase compared to rents a year ago.
• Midtown demonstrated a sizable 10% increase in average asking rents, rising to $121 compared to last year.
• West Side and Midtown South average asking rents increased 7% and 4.2% respectively.
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.
Robin Abrams, REBNY Retail Stores Committee co-chair and executive vice president at The Lansco Corporation noted, “The rise in average asking rents for ground floor space reflects an encouraging pattern we’ve seen in the market. Available space in the prime retail corridors is commanding higher rents, meaning retailers are optimistic about the city’s economy.”
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, GVA Williams, Madison HGCD, LLC, Massey Knakal, Menkin Realty Services, Murray Hill Properties, Newmark New Spectrum Retail, LLC, Northwest-Atlantic Partners, Inc., Ripco Real Estate Corp., Robert K. Futterman & Associates, LLC, Rockrose Development Corp., 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.