From the December issue: All indicators are pointing toward this holiday shopping season in New York City outperforming the past two, which were among the worst in decades. At the same time, an increase in leasing activity in the city seen in the past year is expected to continue going into 2011 — especially if retailers have a strong showing this month.

Faith Hope Consolo, chairman of retail leasing at Prudential Douglas Elliman, believes that New York City retailers will do at least 2 to 3 percentage points better this holiday season than the past two years.

Jeff Roseman, executive vice president at Newmark Knight Frank, said consumer spending has been “pent up” for the past two years. “Retailers are discounting earlier and more often, and this could create the perfect storm for shoppers,” he said, predicting a “surprisingly good” holiday season. [more]

One of the country’s most sought after retail locations — the corner of Park Avenue and 56th Street — is sitting empty, two years after developer Harry Macklowe, head of Macklowe Properties, defaulted on the loan that would have allowed him to build up the spot. But, even as Macklowe sold off the prime General Motors Building on the corner of Fifth Avenue and 59th Street, the group is determined to hang onto the former spot of the Drake Hotel. Even though Deutsche Bank filed a suit for foreclosure on the property in August 2008, reports indicate that Macklowe is angling for a comeback on the property. The development group paid $520 per square foot for the air rights for eight surrounding townhouses, a record rate, according to the New York Times, so that he won’t be restricted in the height of his yet-to-arrive development.