Manhattan retail corridors suffer in 3Q

TRD New York /
Oct.October 20, 2010 02:00 PM

From left: Joanne Podell, 521 Fifth Avenue and 1515 Broadway

After an overall strong second quarter, Manhattan’s prime shopping corridors showed mixed results last quarter with rents falling or remaining flat and vacancy rates climbing in more than half the districts tracked, a new report from commercial services firm Cushman & Wakefield shows.

Of the seven districts covered in the report, asking rents fell or were flat in three, and vacancy rates rose in four, the Manhattan retail report indicates.

Prices fell the most in Times Square, where they dropped $40 per foot to $651 per square foot. That was in part because sunglass and sports retailer Oakley signed a lease at 1515 Broadway reported to be $1,400 per square feet for about 1,800 square feet of ground-floor retail last quarter. With the removal of the above-market space, the overall asking rents fell, the report says. The shopping district where the vacancy rates rose the most was upper Fifth Avenue between 49th and 60th streets, where it jumped 1.5 points to 8.1 percent, the Cushman reports show.

The strongest district was lower Fifth Avenue, between 42nd and 49th streets, which was the only stretch to show both growth in asking rents and a decline in vacancy rates. Asking rents rose $87 per foot to $501 per foot, while the vacancy rate dipped .15 points to 6 percent, the figures show. The largest new lease there was Urban Outfitters, which leased 25,866 square feet at 521 Fifth Avenue.

But brokers remained confident in Manhattan retail, noting the healthy growth in certain areas.

“Generally speaking, the markets are strong,” said Joanne Podell, a retail broker and executive vice president at Cushman. She noted that in Soho, where the vacancy rate fell .9 points to 9 percent, there were only a few spaces available, and spots were leasing up quickly.

Podell was bullish on Times Square as well, despite a slight rise in the vacancy rate, which rose .5 points to 9.3 percent on top of the decline in asking rents. To illustrate the demand, she said that for a new retailer to elbow into the high-traffic area, an existing store agreed to relinquish its space after its lease was bought out.

 

Related Articles

arrow_forward_ios
Rich Barton, Howard Lorber, Jay Hennick, Brett White

Real estate firms are raising billions in debt and equity. Here’s why

Real estate firms are raising billions in debt and equity. Here’s why
Clockwise from top left: Vornado's Steven Roth, Newmark Knight Frank's Barry Gosin, Redfin's Glenn Kelman, SL Green's Marc Holliday, Marriott's Arne Sorenson, Zillow's Richard Barton, Realogy's Ryan Schneider, and Cushman's Brett White

A real estate earnings call season for the ages

A real estate earnings call season for the ages
Cushman & Wakefield's Brett White (Credit: iStock)

Cushman’s income drops 70% in Q1

Cushman’s income drops 70% in Q1
He sold the Willis Tower and the GM Building. But can Doug Harmon sell the Mountain?

He sold the Willis Tower and the GM Building. But can Doug Harmon sell the Mountain?

He sold the Willis Tower and the GM Building. But can Doug Harmon sell the Mountain?
Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much

Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much

Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much
Cushman & Wakefield CEO Brett White

Cushman’s Brett White taking 25% salary cut

Cushman’s Brett White taking 25% salary cut
Cushman & Wakefield Netherlands’ head Jeroen Lokerse

Cushman & Wakefield already has a social distancing office concept in development

Cushman & Wakefield already has a social distancing office concept in development
Brett White, CEO of Cushman & Wakefield (Credit: iStock; Cushman & Wakefield)

Cushman & Wakefield lays off employees, but won’t say how many

Cushman & Wakefield lays off employees, but won’t say how many
arrow_forward_ios

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

Loading...