Manhattan retail leasing picked up in late '93.

In a very positive sign of economic recovery in New York City's retail sector, more than one million square feet of retail space was leased in Manhattan during the second six months of 1993, according to a real estate industry report issued recently by Garrick-Aug Associates Store Leasing, Inc.

The total amount of space leased in the second half of 1993, exactly 1,098,802 square feet, was comprised of 511 new store leases, including retail support space. During the same period in 1992, 488 stores were leased.

The absorption brought the level of total store space currently available in Manhattan to 5,611,360 square feet, comprising 2,528 stores. This activity reduced the supply of available space by 16 percent from the previous yearend, when 6,645,076 square feet (2,612 stores) was available for rent.

Charles Aug, president, Garrick-Aug Associates, said, "Retail leasing gained momentum during the last half of 1993, however, there is still a large supply of retail space in residential neighborhoods. Banks are reducing their locations and additional bank branch space is coming on the market. Overall, space in midtown is in less supply."

The average asking rate per square foot at year-end 1993 was $46.25; an increase of 9.25 percent above the mid-year 1993 asking price, $41.75.

Large blocks of retail space were leased in 1993 to national chains such as Barnes & Noble, Filene's Basement, Bed N Bath, Bradlees, Staples, A&P, Comp U.S.A., Coconuts, Harley Davidson Cafe and Reebok Gym.

Aug continued, "Strong credit tenants are still in great demand and landlords are still offering strong concessions in exchange for good quality retailers."

In Manhattan, the available stores asking rents, by avenue, were as follows at year-end 1993:

* Third Ave. - 67 stores available, $61/sf;

* Lexington Ave. - 51 stores available, $77/sf

* Madison Ave. - 54 stores available, $139/sf

* Fifth Ave. - 34 stores available, $171/sf

* Columbus Ave. - 29 stores available, $52/sf

* Broadway - 117 stores available, $67/sf

In Manhattan, the available stores asking rents, by unit size, were as follows at year-end 1993:

* 1 to 1,000 square feet - 845 stores available, $68.25/sf

* 1,001 to 2,500 square feet - 771 stores available, $58.25/sf

* 2,501 to 5,000 square feet - 466 stores available, $51.50/sf

* 5,001 to 10,000 square feet - 213 stores available, $48.00/sf * Over 10,000 square feet - 89 stores available, $32.50/sf

Tracking the three-year trend (1991-1993) of increased absorption and increasing rents, the report cited a steady decrease in available retail space from approximately 7.5 million square feet at an average asking price of $40/sf in 1991 to the present 5.6 million square feet at $46/sf.

Aug concluded, "In reflecting back to the boom years of the 1980s, the Garrick-Aug Retail Space Report for the year ended 1987 reported 1,607 stores available in Manhattan, compared with approximately 2,500 available today. We are far from out of the woods at this time, but a strong recovery is underway for the retail space market in Manhattan."