As prime retail rebounds, tenants find bargains in less popular areas, on side streets

TRD New York /
Jul.July 11, 2011 08:47 AM

Vacant storefronts in prime city areas are finding tenants, and many stores are seeing rents as high as they were in 2007. In order to survive, or find a bargain, retailers are getting creative and looking in less popular neighborhoods, or on side streets, according to the Wall Street Journal.

“It’s a tale of two cities,” said Gene Spiegelman, a broker at Cushman & Wakefield, of the price gap.

In 2008, retail vacancy reached 9 percent on the desirable upper stretch of Fifth Avenue, according to data provided by Faith Hope Consolo, chairman of retail leasing and sales at Prudential Douglas Elliman. The vacancy rate now sits around 7.5 percent. Rents fell to less than $2,000 a square foot, still the highest in the city. The vacancy rate hit 15 percent on Madison Avenue, according to Consolo, while in Soho, the rate went above 11 percent.

Starting last summer high-priced deals made their return to prime areas like Times Square, the Journal reported, which seemed to mean the end of bargains in prime areas.

Side streets however, or downtown locations, often don’t see the same growth. On Third Avenue on the Upper East Side, where furniture store CB2 just secured its new space, the vacancy rate still hovers at 11.4 percent.

Soho’s Crown Art Gallery, a 40-year fixture in the area, has seen other galleries come and go as a result of steep rent hikes. The gallery however, was recently able to double its space on quieter West Broadway. Its rent will only rise to $30,000 a month from $22,000.

“The rent is not affordable,” owner John Turan said. “The rent is very high, but because we sell high-end artwork, we can sell a Picasso or a Chagall for $150,000 or half-a-million dollars.” [WSJ]


Related Articles

arrow_forward_ios
John Giannone and Jac Credaroli (Credit: iStock)

Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans

Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)

Douglas Elliman is coming to Texas

Douglas Elliman is coming to Texas
Douglas Elliman chairman Howard Lorber (Credit: Getty Images and iStock)

Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax

Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
Zillow CEO Richard Barton and Douglas Elliman chairman Howard Lorber (Getty, JD Lasica via Flickr)

StreetEasy threatens to yank Elliman’s rental listings

StreetEasy threatens to yank Elliman’s rental listings
Assembly Speaker Carl Heastie (Getty)

Assembly speaker fast-tracks rent relief bill

Assembly speaker fast-tracks rent relief bill
New York State lawmakers have approved a moratorium on evictions for the remainder of the Covid-19 emergency. (iStock)

Eviction-ban bill passed by lawmakers as landlords object

Eviction-ban bill passed by lawmakers as landlords object
Molly Townsend (Getty, iStock)

Ex-Douglas Elliman sales manager Molly Townsend joins Triplemint

Ex-Douglas Elliman sales manager Molly Townsend joins Triplemint
Barry Sternlicht and (from top) Capital Mall in Washington, Franklin Park Mall in Ohio and Plaza West Covina Mall in California (Credit: Capital via Starwood, Franklin via OCP Contractors)

Competing bids for Starwood’s suffering retail

Competing bids for Starwood’s suffering retail
arrow_forward_ios

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

Loading...