NYC
RETAIL RENTS ON THE RISE ACCORDING TO REBNY REPORT
--Westside and Midtown South retail corridors heat up as
rents spike as much as 82% --
NEW YORK, NY, Oct. 21, 2004 – Retail rents continued to surge in the last six months as Westside corridors such as 34th Street and West 42nd Street experienced substantial increases, according to The Real Estate Board of New York’s (REBNY) Fall Retail Report.
The report found that the average asking rents for ground floor space on 34th Street between 5th Avenue and 7th Avenue jumped to $299 per square foot, up 82% since the same time last year. West 42nd Street between 6th Avenue and 8th Avenue surged 54% to $243 per square foot. The surge in prices reached Manhattan’s northernmost retail corridor with asking rents jumping 28% to $77 per square foot on 125th Street.
“In the last six months retail rents have continued to soar in numerous areas of Manhattan,” said Steven Spinola, REBNY President. “Having surpassed sagging rents post-9/11, the market has not only rebounded, but new areas have emerged as attractive locations for national and local retailers. The Meatpacking District, for example, is hotter than ever, with an influx of new stores such as Scoop, Diane von Furstenberg, and the Puma flagship store.”
The report also recorded the following findings:
• The asking rent in Midtown South (34th Street between 5th Avenue and 7th Avenue and Fifth Avenue from 14th Street to 23rd Street) was up 21% to a median of $186 per square foot. The average asking rent rose 19% to $187 per square foot for ground floor space only.
• Average asking rents for ground floor space on the East Side in the spotlighted corridors (3rd Avenue between 60th and 72nd Street and Madison Avenue between 57th and 67th Streets) rose 24% to $453 per square foot. The median asking rent there increased 17% to $321 per square foot.
Market area asking rents, a survey of all available retail space (ground floor and other) also experienced gains:
• Westside average asking rent climbed 27% to $136 per square foot for all space.
• Midtown South saw an 11% increase in average asking rents for all space to $78 per square foot.
• Increasing 4% were the East Side, Midtown and Downtown areas to $148, $129 and $73 respectively for all space.
Overall Manhattan average asking rent for all space rose 5% to $97 per square foot.
• Stores with less than 1,000 square feet continue to lead with an average asking rent of $159 per square foot, an increase of 7%.
The Retail Report reached its four-year anniversary with the Fall 2004 edition.
About the 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
from a broad cross section of the city’s top real estate firms. 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, Grubb & Ellis New York Inc., GVA Williams, Madison HGCD, LLC, Massey Knakal, Menkin Realty Services, Murray Hill Properties, Newmark New Spectrum Retail, LLC, Northwest-Atlantic Partners, Inc., Retail Realty, LLC, Robert K. Futterman & Associates, LLC, Rose Associates, Inc., Silverstein Properties, Inc., Staubach Retail Services, The Lansco Corp., Walker, Malloy & Co., Inc.
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.
###
** Members of
the press can obtain a copy of the REBNY Fall Retail Report by
contacting Cara Marino at 212-889-0808.