UPDATED, Jan. 20, 12:30 p.m. — Fifth Avenue is set to welcome a new tenant come spring.
Fitness brand Alo Yoga has signed a lease at Rockefeller Center’s 600 Fifth Avenue, replacing Ann Taylor, sources told The Real Deal.
The retailer, which carries fitness clothing, gear and accessories, will be taking over 5,000 square feet on the ground and 4,400 square feet on the lower level.
Alo Yoga will pay $3 million each year for the space and its lease is for seven years. It will take possession of the space in May.
The building is owned by Tishman Speyer.
Newmark’s Benjamin Birnbaum, who brokered the deal, declined to comment.
Fifth Avenue has struggled during the pandemic as retailers have vacated their storefronts. In February 2021 — one year after the onset of the pandemic in New York City — the retail corridor had 32 empty spaces across 17 blocks, roughly a quarter of the 119 storefronts on the stretch.
Some stores have avoided going dark in the wake of the pandemic, but in the process have caused pain for their landlords.
The NBA Store at 545 Fifth Avenue owed $1.9 million in back rent on its $625,000-per-month lease, sparking a lawsuit that was eventually settled. After Ralph Lauren attempted to sublease their space at 711 Fifth Avenue to fashion retailer Mango, landlord Shvo Group rejected the sublease on the grounds that Mango doesn’t meet the caliber of luxury tenant they envision for the property.
An increase in availability has also caused rents to decline. Fifth Avenue between 49th and 59th streets saw an average asking price per square foot of $2,628, a 12 percent decrease from spring 2021, according to a report by the Real Estate Board of New York.
The area’s suffering is thanks to a decline in tourism and office workers, who would typically populate the street.
However, in recent months, the area has seen leasing pick up. Core Club, for example, inked a 20-year lease at SHVO’s 711 Fifth Avenue.
This story has been updated to correct the building’s owner.