Times Square stands tall as retail rents slip across Manhattan

Neighborhood rents dropped as much as 18% in Q2

Times Square (Credit: Wikipedia)
Times Square (Credit: Wikipedia)

Retail rents are sliding south across the city, bar one exception: Times Square.

Almost all of Manhattan’s main shopping corridors each took a steep retail rent decline in the second quarter of 2018, when compared to year-on-year averages, according to a Cushman & Wakefield report cited by Commercial Observer.

Cushman found the most prominent retail spots took the hardest hits, including Upper Fifth Avenue, Madison Avenue, Soho and Herald Square.

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Times Square, however, recorded an increase in average ground-floor rents spike up from $1,977 per-square-foot to $1,993, for the area bordered by Broadway, Seventh Avenue, and West 42nd and West 47th streets.

Michael Azarian, senior director of retail services at Cushman, told the outlet that a recent entry of new tenants in Times Square, including Lionsgate Entertainment at 11 Times Square and the National Hockey League at 20 Times Square, had been a significant drawcard for the area.

Meanwhile, Upper Fifth Avenue between 49th and 60th streets, recorded an 18 percent year-over-year drop from $3,295 a square foot to $2,694. One other retail-heavy district, Union Square West and Flatiron District, flatlined in retail ground-floor rents, remaining at $421 a square foot.

It comes following a rough first quarter, where retail rents dropped as much as 18.4 percent in the city’s prominent retail strips.  [CO] — David Jeans