Rents grow in half of Manhattan retail corridors

Buoyed by H&M lease, "Lower Fifth" comes into its own

TRD New York /
Nov.November 28, 2012 03:00 PM

Of any retail submarket, Herald Square experienced the greatest growth in average asking rent quarter-over-quarter, according to numbers CBRE released today. That neighborhood saw rents increase 30 percent quarter-over-quarter, to $657 per square foot, the report shows.

Other New York City retail hubs also fared well. In fact, six out of the 11 hubs the report monitors saw rent increases, as the New York Observer first reported. Downtown Manhattan rents grew 28 percent in the same period, to $213 per square foot, and Lower Fifth Avenue (between 42nd and 49th streets) and Times Square both saw rents increase 23 percent, to $1,118 and $2,221 respectively, the numbers show.

A 57,000-square-foot lease by apparel retailer H&M at 589 Fifth Avenue has been a boon for the stretch of Fifth Avenue often referred to as “Lower Fifth,” along the avenue in the 40s, the report notes.

“The line between 42nd to 49th Streets and 49th to 59th Streets is vanishing,” Jedd Nero, executive vice president at CBRE, told the Observer. “Tourists don’t stop at the invisible border at 49th Street,” which previously marked the barrier to the Fifth Avenue stretch, which has traditionally been the city’s — and often the world’s — priciest retail corridor. [NYO] –Guelda Voien


Related Articles

arrow_forward_ios
MetLife Building and Matt Van Buren, CBRE’s tri-state president (Getty, CBRE)

CBRE closes 2 offices, expands presence at MetLife HQ

CBRE closes 2 offices, expands presence at MetLife HQ
Clockwise:  CBRE's Michael Remer, Richard Hodos and Joel Stephen with the Wizarding World Building at 935 Broadway (Images via CBRE)

CBRE’s Hodos and other Muggles win REBNY award for Harry Potter deal

CBRE’s Hodos and other Muggles win REBNY award for Harry Potter deal
(iStock)

Look out below: Major real estate services firms brace for falling earnings

Look out below: Major real estate services firms brace for falling earnings
Brookfield Property Partners' Brian Kingston, Silverstein Properties' Larry Silverstein and Empire State Realty Trust's Anthony Malkin (Getty)

Real estate firms lead cautious return to NYC offices

Real estate firms lead cautious return to NYC offices
Hana CEO Andrew Kupiec, The Real Deal's Hiten Samtani and Hana's EVP of Occupier Solutions Georgia Collins

The REInterview: How flex space could upend supply-demand dynamics in the office market

The REInterview: How flex space could upend supply-demand dynamics in the office market
Matthew James (Credit: ABC)

First black “Bachelor” for ABC comes from real estate world

First black “Bachelor” for ABC comes from real estate world
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
Director of Research & Analytics for CBRE Tri-State Nicole LaRusso, Vice Chairman & Director at Savills David Goldstein, and President of Newmark Knight Frank's Tri-State region David Falk

“For years we all laughed at them”: office brokers warm to virtual tours

“For years we all laughed at them”: office brokers warm to virtual tours
arrow_forward_ios

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

Loading...