Manhattan retail leasing falls 25% on the quarter: CBRE

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

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

11 Times Square retail (Credit: 11 Times Square)

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
Mayor Bill de Blasio (Getty, Wikimedia)

Landlords challenge city laws protecting non-paying businesses

Landlords challenge city laws protecting non-paying businesses
From left: G.H. Palmer's Geoffrey Palme, RFR Holdings' Aby Rosen, Macklowe Properties' Harry Macklowe, Thor Equities' Joseph Sitt and Ellicott Development's Carl Paladino (Getty, iStock)

Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks

Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks
Photo illustration of Ryan Serhant and  22-43 Jackson Avenue (Getty, Trader Joe's) 

Trader Joe’s to open in LIC early next year

Trader Joe’s to open in LIC early next year
Shawn Mobley (left), is being replaced by Andrew McDonald (right) as CEO of the Americas at Cushman

Shakeup at Cushman: Mobley out, McDonald promoted

Shakeup at Cushman: Mobley out, McDonald promoted
(iStock)

To survive, NYC retailers are treating average Joe’s like they’re rich

To survive, NYC retailers are treating average Joe’s like they’re rich
Governor Andrew Cuomo and Roosevelt Field Mall in Long Island (Getty)

Malls allowed to reopen in New York state — with strict guidelines

Malls allowed to reopen in New York state — with strict guidelines
The financing deal comes after AMC theaters have been shuttered for months due to the coronavirus pandemic. (iStock)

AMC nears deal to avoid bankruptcy

AMC nears deal to avoid bankruptcy
CIM Group’s Shaul Kuba, Knotel's Amol Sarva, Related Group’s Jorge Pérez and The Agency’s Mauricio Umansky (Getty, Sarva by Sasha Maslov, iStock)

These real estate companies got fat PPP loans

These real estate companies got fat PPP loans
arrow_forward_ios

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

Loading...