The Real Deal New York

Commercial market report: Top retail rents far outstrip the average

Soaring prices at marquee locations give a misleading impression

December 23, 2015 04:45PM
By Adam Pincus

730 Fifth Avenue in Midtown

730 Fifth Avenue in Midtown

From the December issue: The huge surges in retail asking rents over the past several years in popular shopping districts in Manhattan such as Times Square, Fifth Avenue and Soho have exaggerated just how strong the market is. In reality, there are massive differences between high-street retail and mom-and-pop districts.

The astronomical retail prices that landlords are achieving on Fifth Avenue, such as the $5,500 per square foot that Jeff Sutton and General Growth Properties landed in October for one 3,000-square-foot space at 730 Fifth Avenue, are more than 50 times higher than a handful of spaces only a few blocks away. [more]