In rough retail market, strong tenants snap up more space

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Manhattan retailers are jumping on cheap storefront real estate, according to industry experts, as commercial landlords slash prices to entice renters. Retail vacancy in the borough hovered above 10 percent in the third quarter this year, according to Crain’s, and small and large retailers are seizing their newly found leverage in the market to upgrade to larger and nicer spots. CVS, for example snagged a 1,200-square-foot spot at 1241 Lexington Avenue, next to an existing location, after the deli that had been there shut down. The expansion at 84th Street marked a 20 percent growth in space. Jason Pruger, a senior managing director at Newmark Knight Frank Retail, said this is a classic example of how stronger retailers are behaving in the market. “The opportunities came, and CVS took them,” Pruger said. “Landlords are eager to capitalize on giving as much space as they can to top tenants.”

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