The top three industries for new real estate transactions this year have been the usual suspects: law, financial services and not-for-profit and government organizations, according to a report by Colliers ABR.
But the fourth on the list is a surprise – apparel manufacturers.
“Garment makers are doing quite well,” said Robert Sammons, research director at Colliers ABR. “That’s kind of a surprise.”
In the first eight months of 2004, new leasing among these firms in Manhattan has hit over 1.1 million square feet versus just over 800,000 square feet for all of 2003.
Three transactions make up the majority of that figure, with Ann Taylor taking 297,000 square feet in the newly opened Times Square Tower, Ecko Unlimited taking 271,000 square feet at 28 West 23rd Street, and Tommy Hilfiger signing for 205,000 square feet at 601 West 26th Street.
Another 30 smaller tenants also signed deals as well this year, primarily in the garment district west of Sixth Avenue. The leases reported include firms taking additional space.
“There are lots of smaller tenants too, not just the big boys,” Sammons said.
The spaces being leased are headquarters office locations, not actual manufacturing locations, which for the most part have moved out of New York City, the Colliers report said.