More New Yorkers call Times Square home

New study attributes growth to spillover from Hell’s Kitchen

TRD New York /
Jun.June 22, 2012 02:00 PM

Times Square is increasingly becoming a residential neighborhood, according to a new demographic and retail study provided to The Real Deal.

The Times Square area has seen a 15 percent increase in the number of households since 2004, the study, by HR&A Advisors and the Times Square Alliance, shows. The majority of its residents are between the ages of 25 and 34. The number of households in Times Square in 2004 totaled 33,360, while the figure is now 38,272.

“It’s a real New York neighborhood now,” said HR&A’s Kate Coburn, who was responsible for the report.

The report attributes the increase in residents to the “explosive growth” in nearby Hell’s Kitchen and the diversification of high paying jobs in finance, professional services, media, arts and publishing based in and around Times Square. Since 2004 the number of Times Square employees has also increased 15 percent to 200,000, with one in four Midtown employees working in the neighborhood.

“The demand created by these young, well-educated, high-earning residents and the 200,000 area employees can stimulate continued economic growth in the Times Square area,” the report speculates, “particularly growth in the retail and food & beverage sectors. The Times Square area can capture up to $2.1 billion in potential earnings in these two sectors.”

Though the Times Square market is typically thought of as geared towards tourists, more than half of those potential earnings could come from money spent by residents and office workers, the report says.

However, Lisa Rosenthal, a retail broker at the Lansco Corporation, said that while Times Square will always be a top retail destination, its increasing number of residents may not be a driving factor for tenants to lease space in the area. “While residents and potential shoppers are a great addition to the retailers, I’m not so sure that in this particular instance that really drives retailers to Times Square,” she said.

Times Square will always be a huge draw for tenants, she noted, but its appeal is based around the excitement and novelty of having its name and logo featured at one of the world’s most famous junctions as opposed to its ability to attract resident New Yorkers. She added that the additional residential population is potentially more significant for retailers and restaurants considering space west of Eighth Avenue, as those stores primarily attract local shoppers.

Certainly, retailers and investors have appeared bullish on the Times Square market in recent months. Retail rents also up. The “bowtie” heart of Times Square, from 42nd Street to 47th Street, experienced a 28.3 percent jump in the first quarter of 2012, according to a recent report by Cushman & Wakefield, averaging $1,967 per square foot.

The Midtown-based real estate investment trust SL Green Realty and partner Jeff Sutton purchased a small, mid-block Office Building On 46th Street earlier this month, which they plan to demolish in order to expand the selling area at a large retail project they are developing in Times Square, The Real Deal previously reported. And 1 Times Square has finally landed a tenant for part of its 55,000-square-foot vacant retail space; a Russian restaurant company, backed by chain Global Food International, leased 25,000 square feet on the ground floor and mezzanine, last month, the Wall Street Journal reported.

Developers may also be looking to cash in on increased demand for residential properties in the neighborhood. Developer Larry Silverstein’s Silverstein Properties is said to be planning a 60-story residential and retail tower nearby at 514 Eleventh Avenue, between 40th and 41st streets.


Related Articles

arrow_forward_ios
Federal Reserve Chairman Jerome Powell (Getty)

Real estate stocks benefit from second quarter rally

Real estate stocks benefit from second quarter rally
Your friendly neighborhood retail store couldn’t be happier to welcome you back (iStock)

Small Talk: Welcome back shoppers! Everything is going to be fine!

Small Talk: Welcome back shoppers! Everything is going to be fine!
47 Highland Park Village in Dallas, Texas and Valentino CEO Jacopo Venturini (Adam Stewart, Nick Hunt/Patrick McMullan via Getty Images)

Valentino expands in Dallas as it dumps NYC flagship

Valentino expands in Dallas as it dumps NYC flagship
Valentino store on Fifth Avenue and Valentino CEO Jacopo Venturini (Valentino, Nick Hunt/Patrick McMullan via Getty Images) 

Valentino sues to quit Fifth Ave — maybe forever

Valentino sues to quit Fifth Ave — maybe forever
Authentic Brands Group CEO Jamie Salter (blue) and Simon Property Group CEO David Simon (red) (Getty)

Is Brooks Brothers the next retail bankruptcy?

Is Brooks Brothers the next retail bankruptcy?
Fifth Wall Ventures’ Brendan Wallace and The Real Deal's Hiten Samtani

The REInterview: Real estate’s biggest VC on the industry’s existential shifts

The REInterview: Real estate’s biggest VC on the industry’s existential shifts
Simon Property Group’s David Simon (Simon by Mireya Acierto/Getty Images; iStock)

Simon Property Group sues Gap for $66M in unpaid rent

Simon Property Group sues Gap for $66M in unpaid rent
The Papaya King at 179 East 86th Street (Google Maps)

Papaya King vs. the pretender: Iconic hot dog chain in ownership dispute

Papaya King vs. the pretender: Iconic hot dog chain in ownership dispute
arrow_forward_ios

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

Loading...