Amid subway construction, low retail rents on Second Avenue

New York /
Aug.August 06, 2012 01:00 PM

Despite the noise and dust from the Second Avenue Subway construction, there is a silver lining for retailers looking to set up shop. The Wall Street Journal reported that retail rents along Second Avenue on the Upper East Side have dropped 30 to 40 percent since construction began in 2007.

More specifically, according to Massey Knakal tallies, retail rents are now down to $80 per square foot — in 2007, the amount reached nearly $125. For example, a laundry service named DashLocker opened in June on Second Avenue between 81st and 82nd Streets and, according to unnamed sources to the Journal, the rent was in the high $80-$90 range per square foot. As previously reported, the sizes of this and other Upper East Side DashLocker locations span 250 to 975 square feet and $75 to $100 per square foot.

However, the area still faces its struggles, mainly due to the subway construction. Between 79th and 86th streets on Second Avenue, there are six vacant stores, according to Jay Gilbert, an associated director at Newmark Grubb Knight Frank Realty. Jill Lovat, Massey Knakal’s director of retail leasing, said there’s a 25 percent vacancy rate between 72nd and 96th streets.

There’s hope that these low rents will help reestablish the Upper East Side as a cool neighborhood. Jason Pruger, an executive managing director at Newmark, told the Journal he predicts rents will rise 20 percent from peak levels once the 63rd to 96th Street portion of the subway opens up. [WSJ] — Zachary Kussin


Related Articles

arrow_forward_ios
415 West 13th Street is currently occupied by clothing retailer Allsaints. (Google Maps)
Appraiser cuts Meatpacking District store’s valuation to the bone
Appraiser cuts Meatpacking District store’s valuation to the bone
Jokr founder Ralf Wenzel. (Getty)
Delivery startup Jokr plans huge NYC expansion
Delivery startup Jokr plans huge NYC expansion
(Getty, iStock)
Capacity restrictions in NY to ease as soon as next week
Capacity restrictions in NY to ease as soon as next week
1135 Lexington Avenue and Nir Meir (Google Maps, iStock)
Judge rules against Nir Meir in HFZ’s $19M default case
Judge rules against Nir Meir in HFZ’s $19M default case
Macerich president Edward Coppola and a rendering of the redevelopment in Pheonix (Macerich/City of Pheonix)
Macerich unloads Phoenix mall for $100M; redevelopment awaits
Macerich unloads Phoenix mall for $100M; redevelopment awaits
Hammerson CEO Rita-Rose Gagne and Brookfield's Bruce Flatt. (Hammerson, Brookfield, Getty)
Brookfield’s US malls are struggling. Now it’s buying some in Europe
Brookfield’s US malls are struggling. Now it’s buying some in Europe
604 Fifth Avenue and Minamoto Kitchoan president Kemmei Okada (Photos via Google Maps, Minamoto Kitchoan)
Fifth Avenue’s Childs Building sells for $45M
Fifth Avenue’s Childs Building sells for $45M
The 300 West 125th Street location of Buffalo Wild Wings is closing for good. (Google Maps, Getty)
Buffalo Wild Wings chickens out on Harlem lease
Buffalo Wild Wings chickens out on Harlem lease
arrow_forward_ios

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

Loading...