Manhattan retail asking rents fall to nine-year low

Year-over-year drop of almost 13% to $659 psf: CBRE

New York /
Oct.October 15, 2020 06:00 PM
(Getty)

(Getty)

Manhattan retail asking rents fell to their lowest point in nearly a decade this summer as the pandemic compounded a downward trend in demand.

Asking rents across Manhattan’s 16 main shopping corridors fell to $659 per square foot during the third quarter, according to CBRE. That’s down 12.8 percent from the same time last year, and the lowest level since the back half of 2011.

Prince Street in Soho saw the largest drop in asking rents, with pricing falling to $405 per square foot in the third quarter from $705 at the same time last year.

CBRE noted some landlords on Prince Street put new spaces on the market with asking rents roughly half of what they were a year earlier, and spaces already on the market dropped their asks. Several storefronts that had been on the market for more than a year changed brokers.

Leasing volume for the 12 months ending in September totaled 2.67 million square feet, down by nearly a third from the 3.9 million square feet from the same time period a year ago.

Some activists, believing rents have not fallen enough to fill vacancies, have proposed measures to force landlords to reduce asking prices. But CBRE’s report noted that retail asking rents have dropped for 12 consecutive quarters.





    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
    (iStock)
    Manhattan’s retail market ticks up toward rebound
    Manhattan’s retail market ticks up toward rebound
    Office subleases abound in North Dallas suburbs
    Office subleases abound in North Dallas suburbs
    Office subleases abound in North Dallas suburbs
    Omni NY's  Maurice "Mo" Vaughn and 92-23 168th Street in Jamaica (Omni, Google Maps)
    Omni NY inks indoor playground chain to 33K sf lease in Jamaica
    Omni NY inks indoor playground chain to 33K sf lease in Jamaica
    400 West 219th Street (Google Maps)
    These were Manhattan’s largest retail leases of 2021
    These were Manhattan’s largest retail leases of 2021
    (iStock/Photo Illustration by Steven Dilakian for The Real Deal)
    Jobs in warehousing and storage above pre-pandemic levels; hospitality showing strong recovery
    Jobs in warehousing and storage above pre-pandemic levels; hospitality showing strong recovery
    The average business in a low-income community received about $276,000, compared to more than $590,000 for those elsewhere. (iStock)
    Federal relief favored restaurants in wealthy areas: study
    Federal relief favored restaurants in wealthy areas: study
    CBRE to buy $4.9B global industrial portfolio
    CBRE to buy $4.9B global industrial portfolio
    CBRE to buy $4.9B global industrial portfolio
    arrow_forward_ios

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

    Loading...