From the November issue: The amount of free rent that landlords are offering to entice reluctant tenants to sign contracts has hit record levels in the current downturn, despite the fact that asking rents have started to stabilize in parts of the Manhattan leasing market. In the third quarter, two Midtown leases were signed with 17 and 18 months of free rent — double the average of eight and a half months, figures from the most recent report from commercial services firm CB Richard Ellis showed. Some industry professionals said even longer rent-free periods were being negotiated. “For some landlords it may be advantageous to give more free rent [but] with a higher rent [per square foot],” he said. The free rent was just one element of a soft Manhattan leasing market that saw a 1 percent decline in September asking rents. Those rents fell to $50.78 from $51.28 per square foot the month earlier, the CBRE data shows. Average asking rents are now down 29 percent from the peak of $71.92 per square foot in July 2008.

Against the odds, Union Square retail businesses have been thriving in the recession, even as some of New York City’s most venerated shopping areas struggle. Fifth Avenue, Times Square and Soho, all long-time shopping havens, have all seen retail vacancies hit 10 percent or higher this year. But even as Circuit City and the Virgin Megastore vacated the Union Square neighborhood after the chain went bankrupt earlier this year, two new chains, Nordstrom Rack and Best Buy, announced they’d be moving in. Rachel Meltzer, a researcher with the NYU Furman Center for Real Estate and Urban Policy, said that foot traffic in the area has risen 59 percent in the last five years, a key component to the neighborhood’s success. “I don’t think it’s considered a transportation corridor anymore so much as a destination,” Meltzer said.

1. Africa Israel and Mann Realty Associates reach agreement in Apthorp battle [Crain's] and a look at the Apthorp’s restoration [NYDN]
2. History of a Catholic church at 250 East 72nd Street [NYT]
3. Charter school still looking for space [NYDN]
4. City sues owners of 43 Macdougal Street, which sits in historic district, for not making repairs [Villager]
5. Bronx school’s planetarium reopens [NYDN]
6. Downtown rental rates on the decline [Villager, 2nd item]
7. Neighbors say Donna Karan’s event space on Greenwich Street is too noisy [Villager]
8. Union Square Community Coalition still trying to prevent Parks Department from putting restaurant in Union Square [Villager]
9. Former stand-up comic now struggling real estate agent [NYDN] [more]

Tommy Hilfiger and Virgin Megastore in Union Square

Clothing retailer Tommy Hilfiger is rumored to be shopping for retail
space in Union Square and may be considering a “concept store” in the
area. He is said to have looked at the former Circuit City space and at
the Virgin Megastore’s soon-to-be-vacant space on Union Square South.
Wal-Mart, Best Buy and Nordstrom have also reportedly looked at the
storefronts, which are controlled by the Related Companies and are
being marketed by Winick Realty Group. Filene’s Basement’s bankruptcy
filing could leave another vacant store in the area. [more]