Despite study, brokers remain confident in value of Fifth Avenue retail

TRD New York /
Nov.November 21, 2012 11:30 AM

Causeway Bay be damned! The glitzy Hong Kong shopping destination may have unseated Fifth Avenue as the world’s most expensive retail street, but New York City brokers are still bullish on Fifth, the Commercial Observer reported.

A recent Cushman & Wakefield report found that Causeway Bay was the most valuable shopping strip in the world, knocking Fifth Avenue from the position for the first time in 11 years. But Fifth Avenue’s No. 2 position may have more to do with a whopping 35 percent increase in Hong Kong retail rent values than New York losing value, brokers told the Observer.

“There’s no doubt that Causeway Bay in particular, and Hong Kong in general, are hot, high-end retail markets,” Jack Terzi, principal of brokerage JTRE, told the Observer. “But I doubt that market has eclipsed Fifth Avenue as the world leader.”

Terzi hypothesized that the Cushman report relied on leases along all of Fifth Avenue, rather than isolating the prime retail locations between 52nd and 58th streets, and may have relied on older leases that are now below market value.

Norman Sturner, president and founder of Murray Hill Properties, which owns 530 Fifth Avenue, said that in the future, prices may increase because of limited supply and demand from middle-market retailers between 42nd and 52nd streets.

Joe Sitt of Thor Equities, which owns several Fifth Avenue properties, said he knew of three retailers that had offered more than $3,000 per square foot to lease a space at 505 Fifth Avenue currently occupied by discount clothier H&M. [NYO]Leigh Kamping-Carder


Related Articles

arrow_forward_ios
Stefano Ricci, Joe Sitt and 118-120 Northeast 39th Street (Getty, Thor, Google Maps)

Thor Equities sues to evict Stefano Ricci from Miami Design District

Thor Equities sues to evict Stefano Ricci from Miami Design District
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
Prominent New York City retail spaces — including the Macy’s flagship store and Fifth Avenue retail corridor — were hit by widespread looting on Monday night. (Getty)

Macy’s, 5th Ave retail ransacked by looters on NYC’s first night of curfew

Macy’s, 5th Ave retail ransacked by looters on NYC’s first night of curfew
Norman Sturner and David Sturner of MHP Real Estate Services (Credit: Getty)

Norman Sturner’s MHP lets go of more than half its brokers

Norman Sturner’s MHP lets go of more than half its brokers
Michael Shvo, Thor Equities’ Joe Sitt, Wharton Properties’ Jeff Sutton and 530 Broadway

Michael Shvo closes on Soho retail building for $382M

Michael Shvo closes on Soho retail building for $382M
Jack Terzi and 23 Wall Street (Credit: Wikipedia)

Jack Terzi finalizes 99-year lease option at 23 Wall Street

Jack Terzi finalizes 99-year lease option at 23 Wall Street
494 Broadway and Thor Equities' Joe Sitt (Credit: Google Maps)

Thor faces foreclosure on site where lender says it’s seeking “unrealistic rents”

Thor faces foreclosure on site where lender says it’s seeking “unrealistic rents”
14-16 Fifth Avenue along Madison Square Park and Madison Realty Capital's Josh Zegen (Credit: Google Maps)

Madison Realty Capital planning condo by Washington Square Park

Madison Realty Capital planning condo by Washington Square Park
arrow_forward_ios

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

Loading...