Retail rents in Harlem are tracing the path taken by home prices and rents in the area since the boom. According to the New York Daily News, that increasingly means national chains are replacing the neighborhood’s beloved mom-and-pop businesses.
The average retail rent in the second quarter this year was $100 per foot, up 33 percent from $75 the prior-year quarter, which itself was a 50 percent increase of retail rates in 2010. Prudential Douglas Elliman Retail Chairman Faith Hope Consolo said she expected the asking rents to soon reach $175 per foot.
There’s activity “happening on 125th St., Frederick Douglass Boulevard and Lenox Avenue as well as Sugar Hill and on 145th Street,” Consolo said. “The only place that is lagging is Spanish Harlem.” Red Lobster is moving in next door to the Apollo Theater and Whole Foods is reportedly on the look-out for a Harlem store.
Harlem Lofts President Robert Pair said the shifting retail climate is a direct result of the government raising the limit on federally backed loans, making the neighborhood an attainable alternative for families seeking larger spaces. [NYDN]