Will NYC’s retail boom hit the wall?

TRD New York /
Jan.January 23, 2014 01:20 PM

Retail may be sizzling in New York City, but industry experts anticipating the rise of online shopping are predicting brick-and-mortar retailers will reduce the amount of square footage they lease across the U.S. in the next few years.

Megastores like J.C. Penney and Macy’s announced major store closings recently, and Sears is now set to close its flagship Chicago store after shuttering hundreds of stores, according to NBC News. Retailers across the U.S. are expected to shrink their stores by one-third to half of their current size in the next five to 10 years, said Michael Burden, a principal with Excel Space Retail Services, to NBC. With retail rents soaring to more than $1,000 per square foot in New York City shopping meccas like Soho and Lower Manhattan, the pressure to downsize is even greater.

“I believe we’re going to hear a lot more announcements in the coming months,” of retailers shrinking their presence, Burden said to NBC. It’s “an indication that there is a shift in the retail environment and it’s one that will continue.”  [NBC News] — Angela Hunt

Related Articles

Clockwise from top left: 312 West 34th Street, 61 North 9th Street, 639 Classon Avenue, and One Fulton Square (Credit: Google Maps)

These were the top 10 NYC retail leases in July

When it comes to retail, “real estate in New York is fundamentally broken”

Retail ruh-roh: Mall REITs take hit following Forever 21 bankruptcy

For mall owners like Simon, Brookfield and Vornado, Forever 21 bankruptcy signals more trouble ahead

Clockwise from top left: 35-00 48th Street in Astoria, 558 Broadway, 63 Madison Avenue, and 85 Jay Street in Brooklyn (Credit: Google Maps, Wikipedia, LoopNet, and Williams New York)

These were the top 10 NYC retail leases in August

10 Madison Square West (Credit: StreetEasy, iStock)

Lawsuit: Pet Smart’s animal excrement is stinking up this $11K-a-month apartment

From left: Jeff Sutton, Brookfield's Ric Clark, and Apollo's Leon Black with the Crown Building

Apollo to provide $800M loan for Crown Building

New York City Council Member Helen Rosenthal (Credit: Wikipedia and Getty Images)

The economic realities behind the city’s “storefront tracker” bill