NYC retail rents expected to fall

New York /
Mar.March 12, 2009 11:56 AM
 NYC retail asking rents and vacancy trends (Source: Marcus & Millichap)

Retail asking rents in New York City will drop modestly this year despite the loss of tens of thousands of jobs and the anticipated delivery of 1.8 million square feet in several major developments, Marcus & Millichap Real Estate Investment Services said in a national report released this week.

Asking rents are expected to drop for the second straight year to $68.73 per foot, a fall of 2.3 percent from $70.33 per foot in 2008. That was a .2 percent drop from $70.48 per foot in 2007, the report said.

“While large retailers are faring well in the metro [area], concern has mounted regarding the health of mom-and-pop and boutique tenants,” the report’s authors said.

New York City’s ranking fell from fourth place to sixth in the national index of 43 major markets because of a weaker job outlook, with 105,000 jobs expected to be slashed in the city this year, according to the report.

Significant deliveries in the city include the 485,000-square-foot East River Plaza in East Harlem and the 1 million-square-foot Gateway Center in the Bronx Terminal Market.The top market in the national survey was San Diego and the lowest was Kansas City, Miss.

Nationwide, despite a 30 percent decline in new retail completions in 2009, the vacancy rate is expected to rise by 1.8 points to 10.2 percent and asking rents are predicted to fall by 4.5 percent, the report said.

In addition to the report, there is anecdotal evidence that troubled retailers are asking their landlords for steep rent discounts.TRD


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Manhattan job losses in Q3 worst of any large county in the US
Manhattan job losses in Q3 worst of any large county in the US
Jerome Powell (Getty)
Powell sees new opportunity to reform low-income lending rule
Powell sees new opportunity to reform low-income lending rule
(iStock/Illustration by Kevin Rebong for The Real Deal)
Year from Hell: 80% of Brooklyn businesses saw revenue drop
Year from Hell: 80% of Brooklyn businesses saw revenue drop
Photo illustration of Gov. Andrew Cuomo (Getty, iStock/Illustration by Kevin Rebong for The Real Deal)
Status of NY’s commercial eviction ban is unknown
Status of NY’s commercial eviction ban is unknown
Rudin Management's Bill Rudin, 1675 Broadway and Gannett CEO Mike Reed (Getty, Google Maps, Gannett)
Gannett to move its NYC office two blocks north
Gannett to move its NYC office two blocks north
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...