Over the last few months, the retail market has slowed according to our Advisory Group. Reflecting this trend, the average asking price for all available retail space in Manhattan was $129, 3% lower than a year ago.
However, on the East Side, the average asking rent for all available retail was up 11% from a year ago, to $190. Midtown South reported a 6% increase to $111; Downtown, a 1% increase to $110.
Our Advisory Group noted that these asking rents are based on availabilities as of September 30 and may not reflect the turmoil in the financial markets in October. However, they added that asking prices do not fluctuate like stock prices and that we should not necessarily anticipate any dramatic shifts over the next few months. They point out that owners are likely to address a softening market by increasing the free rent period or the tenant work allowance. What they all acknowledged was that tenants are still leasing space and deals are being made.