Despite retail’s demise, new store construction continues across the US

Buying power per sf of retail space in NYC declined 7% since 2000: report

New York /
Jun.June 12, 2017 10:30 AM

Consumers are turning away from brick and mortar shops in droves, but developers are continuing to build retail space across the United States.

In New York City, buying power per square foot of retail space declined 7 percent from 2000 through the first three months of 2017, Bloomberg reported, citing CoStar Group figures. CoStar looked at the changes in retail space and buying power in 16 major U.S. metro areas over the past 17 years. It found that, apart from San Diego, Seattle and San Francisco, new retail development in all the cities surveyed outpaced local demand.

Cleveland, where buying power per square foot of retail space declined by 26 percent, was the city with the biggest gap between retail development and demand. Memphis (decline of 24 percent) and Chicago (decline of 20 percent) took second and third place.

CoStar worked out buying power as a function of median income and population, according to Bloomberg.

While New York City’s decline of 7 percent was far more modest, the retail market in the city has struggled over the past 18 months.

At the Westfield Corp.’s shopping complex at the World Trade Center, around 20 percent of the space remains empty and unopened, according to calculations by The Real Deal.  There have also been some big-name store closures. Last month, Ralph Lauren said it will close its flagship Polo Store On Fifth Avenue. [Bloomberg]Miriam Hall


Related Articles

arrow_forward_ios
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
These were the top 10 NYC retail leases in July
From top, clockwise: Cushman & Wakefield's Joanne Podell, Showfields' Amir Zwickel, Appear Here's Josh Yentob, Brookfield Properties's Mark Kostic (Credit: Getty, LinkedIn)
When it comes to retail, “real estate in New York is fundamentally broken”
When it comes to retail, “real estate in New York is fundamentally broken”
From left: Alice Technologies founder and CEO René Morkos; Join CEO Andrew Zukoski (LinkedIn/René Morkos, LinkedIn/ Andrew Zukoski, iStock)
Construction tech startups Alice, Join score new commitments
Construction tech startups Alice, Join score new commitments
Yelp's Jeremy Stoppelman, Remote Work
Yelp shuttering NYC, Chicago offices after eyeing subleases for remote
Yelp shuttering NYC, Chicago offices after eyeing subleases for remote
A photo illustration of the Ram's Head Inn at 107 South Ram Island Drive in Shelter Island Heights (LoopNet, iStock)
On the dock-et: Shelter Island inn owner sues town
On the dock-et: Shelter Island inn owner sues town
Carl Icahn and Rialto Capital’s Adam Singer (Getty Images. Rialto Capital, Illustration by Kevin Cifuentes for The Real Deal)
Carl Icahn goes to war against Rialto, CMBS servicers
Carl Icahn goes to war against Rialto, CMBS servicers
From left: Brookfield’s Brian Kingston and Hospitality Investors Trust's Jonathan P. Mehlman with Hilton Garden Inn Monterey (Brookfield, Hospitality Investors, Hilton)
Brookfield hotel REIT sues insurers for denying pandemic claims
Brookfield hotel REIT sues insurers for denying pandemic claims
Rubenstein Partners' David Rubenstein and Warren Corporate Center (Rubenstein Partners, iStock)
Tri-state deal roundup: King Kullen loses ground, Modell’s cavities filled
Tri-state deal roundup: King Kullen loses ground, Modell’s cavities filled
arrow_forward_ios

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

Loading...