Spend-happy tourists lift New York’s retail sector

TRD New York /
Jun.June 04, 2012 04:30 PM

Tourists flocking to New York City are driving a retail spending surge in Manhattan, which in turn, is boosting the retail real estate industry, the Wall Street Journal reported. Spending has increased 47 percent over the last five years, and a total of $52.4 billion will pour into the retail industry in 2012.

Tourists are especially drawn to trendy designer stores along Fifth and Madison avenues and boutiques in Soho. The growth in spending is also linked to new real estate developments and an increase in well-heeled Manhattan residents. Faith Hope Consolo, chairman of the retail leasing and sales division at Prudential Douglas Elliman, told the Journal that more new stores opened around New York in the last three years than had opened in the previous 10 years combined.

That’s provided a boon to the local real estate industry that other markets have lacked. “It’s New York,” Consolo said. “And then it’s the rest of the world.”

As The Real Deal previously reported, the retail sphere has also become an important source of revenue for brokerages trying to diversify their income base since the onset of the recession. In addition, the city will play a part in bringing millions of square feet of retail development down the line. [WSJ]

Related Articles

Federal Realty Investment Trust CEO Donald C. Wood and Georgetowne Shopping Center (Credit: Google Maps)

Fairway-anchored Bergen Beach shopping center sells for $85M

Donald Trump and Dean & Deluca's Soho location (Credit: Getty Images, iStock)

Trump Organization sues Dean & DeLuca over rent defaults

Forever 21 owes these five mall owners $20.9 million, bankruptcy court records show.

For mall owners like Simon, Brookfield and Vornado, Forever 21 bankruptcy signals more trouble ahead

10 Madison Square West (Credit: StreetEasy, iStock)

Lawsuit: Pet Smart’s animal excrement is stinking up this $11K-a-month apartment

Clockwise from top left: 312 West 34th Street, 61 North 9th Street, 639 Classon Avenue, and One Fulton Square (Credit: Google Maps)

These were the top 10 NYC retail leases in July

A Nordstrom store (Credit: Getty Images)

The worst stocks you can buy? Retail. And for many, it isn’t getting better.

From left: Topshop and Topman stores at 478 Broadway, Arcadia Group CEO Philip Green, and Vornado CEO Steven Roth (Credit: Getty Images and Google Maps)

US landlords say Topshop owner is freezing them out amid bankruptcy

Sears CEO Edward Lampert (Credit: Getty Images and iStock)

Bringing the band back together: Eddie Lampert to buy Sears Hometown and Outlet Stores