Manhattan retail leasing falls 25% on the quarter: CBRE

Average asking rents fell more than 13% year-over-year to $711 psf

New York /
Oct.October 17, 2017 03:40 PM

The Manhattan retail market saw leasing activity fall nearly 25 percent during the last quarter to 506,000 square feet, though there are signs the sector is steadying.

While leasing and renewal activity fell during the third quarter from 673,000 square feet during the three months prior, the number of ground-floor availabilities on Manhattan’s busiest shopping strips continues to decline from the peak registered earlier this year, according to CBRE.

There were 197 ground-floor availabilities during the third quarter on the 16 major retail corridors the brokerage tracks, falling for the second quarter from the peak of 212 spaces in the beginning of the year, according to CBRE.

The overall average asking rent fell 13.4 percent year-over-year to $711 per square foot.

“The retail market in Manhattan is still finding its new level,” CBRE research director Nicole LaRusso said. “The modest decline in the number of available spaces is a positive sign, though rents continue to decline.”

LaRusso pointed out that availability remains high, and a large portion of new deals – about 20 percent – are short-term leases of three years or fewer. That’s a sign that retailers are cautious about opening new stores in Manhattan.

“Short-term leases are becoming an increasingly important factor in helping to absorb available space,” LaRusso said.

Times Square saw the most activity with nearly 64,000 square feet worth of deals, bolstered by the Madrid-based Parques Reunidos signing a 45,000-square-foot lease at SJP Properties’ 11 Times Square for a Lionsgate Entertainment-themed entertainment center. – Rich Bockmann


Related Articles

arrow_forward_ios
RXR Realty head Scott Rechler and CBRE Tri-State CEO Mary Ann Tighe
Rechler, Tighe know which real estate players will go extinct
Rechler, Tighe know which real estate players will go extinct
Richard Wagman, managing partner, Madison Capital (Care/of, Madison Capital, iStock)
Madison Capital signs wellness company in Brooklyn office
Madison Capital signs wellness company in Brooklyn office
Vornado co-head of real estate Glen Weiss and Sharebite President Mohsin Memon (VNO, Facebook, iStock)
Vornado sweetening Manhattan properties with food delivery partner
Vornado sweetening Manhattan properties with food delivery partner
Thomas Cangemi, chief executive officer, New York Community Bank (New York Community Bank, iStock)
Looming interest hikes prompt multifamily lending spree
Looming interest hikes prompt multifamily lending spree
Retailers are falling behind on their rent (Stock, Photo illustration by Priyanka Modi)
These retailers fell behind on rent last year
These retailers fell behind on rent last year
Jeff Aronson (iStock, Jeff Aronson, CC BY-SA 2.0, via Wikimedia Commons/Photo Illustration by Steven Dilakian for The Real Deal)
Centerbridge closes $2B real estate fund
Centerbridge closes $2B real estate fund
Adir Levitas, founder and CEO, Faropoint (Faropoint, iStock, Illustration by Kevin Cifuentes for The Real Deal)
An industrial “David” in a field of Goliaths
An industrial “David” in a field of Goliaths
Equity Group Investments chairman Sam Zell (Getty, iStock)
Office market’s recovery will outpace retail amid “viability” questions, Zell says
Office market’s recovery will outpace retail amid “viability” questions, Zell says
arrow_forward_ios

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

Loading...