Despite rising rents, retail landlords are still willing to negotiate

New York /
May.May 09, 2012 02:30 PM

Though the city’s retail real estate market has bounced back strongly, landlords are still more willing to negotiate deals with tenants than they were in the past, Andrew Goldberg, executive vice president of CBRE’s New York Tri-State Region Retail Brokerage Services Group, told GlobeSt.com. Goldberg, who was named CBRE’s retail broker of the year last year, said that while they might not come down on rents because of the competitive environment, landlords can be persuaded to upgrade the space or offer money for tenant improvements to the space. However, deals have been taking longer to finalize as a result of these negotiating points.

Meanwhile, the retail market is becoming increasingly tight, especially in established areas, where vacancies are vitrtually non-existent. Goldberg therefore predicted more new construction would come onto the market — not necessarily in the form of new buildings, but in older buildings that are retrofitted to provide retail space and capitalize on growing retail rents.

Finally, Goldberg put the idea that larger retail spaces are no longer tenable to rest. He noted that while many stores are certainly looking to maximize the efficiency of their space in the face of higher rents, there are still retailers that specifically seek out large spaces, including Uniqlo. Those larger leases often force competitors to up the size of their stores, too, Goldberg said. [GlobeSt]


Related Articles

arrow_forward_ios
RXR Realty head Scott Rechler and CBRE Tri-State CEO Mary Ann Tighe
Rechler, Tighe know which real estate players will go extinct
Rechler, Tighe know which real estate players will go extinct
Dollar General to open 1k stores aimed at wealthier, more suburban shoppers
Dollar General to open 1k stores aimed at wealthier, more suburban shoppers
Dollar General to open 1k stores aimed at wealthier, more suburban shoppers
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
Former Newmark brokers Christopher Cowan, Shane Ozment, and Terrance Hunt (CoStar)
Ex-Newmark brokers appeal 1-year ban after judge upholds noncompete
Ex-Newmark brokers appeal 1-year ban after judge upholds noncompete
5 East 59th Street (Google Maps, 5e59.com)
Singapore bank sues to foreclose on ex-Playboy Club building
Singapore bank sues to foreclose on ex-Playboy Club building
Altus CEO Mike Gordon and Reonomy's Richard Sarkis (Altus, Reonomy)
Software giant Altus acquires real estate data firm Reonomy for $200M
Software giant Altus acquires real estate data firm Reonomy for $200M
Developers are finding new lives for “zombie” malls
Developers are finding new lives for “zombie” malls
Developers are finding new lives for “zombie” malls
Vornado Realty Trust’s Steven Roth and Michael Franco (Getty, Vornado)
NYC retail has hit bottom: Roth
NYC retail has hit bottom: Roth
arrow_forward_ios

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

Loading...