Opportunity knocks for savvy retail tenants in a down market. (Insiders Outlook).When talking about retail real estate in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. there are several major shopping areas, including Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. , 57th Street, Fifth Avenue and SoHo, which together provide a good barometer for the state of the market The retailers in these districts appeal not only to New Yorkers but also to national and international shoppers. The performance of these areas, therefore, reflects foot traffic, tourism and spending trends affecting retailers throughout the city. There is little argument that Madison Avenue is one area which has and will continue to command premium rents. During the past year, Madison Avenue has experienced some respectable leasing activity, but lacked the fervor of years past Similarly, retail transactions were also consummated in the 57"' Street and Fifth Avenue areas albeit at a much slowerpace. Though to the naked eye vacancies in this area seem insignificant, there are a number of major sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. opportunities currently available. In contrast, the retail market in SoHo has faltered during these slow economic times. The effects of terrorist attacks of 2001 combined with shaky consumer confidence during the war in Iraq, a harsh winter and the lack of tourism have played havoc with SoHo's retail market In addition to these external influences, the spike in rents over the past few years contributed to area's troubles. Furthermore, most Madison Avenue-type, luxury retailers who had entered the market to take advantage of SoHo's incredible foot traffic, found it difficult to do business there. The tourists and shoppers that visit SoHo - usually trendier and younger--are quite different than those shopping on Madison Avenue and are in the market for something unique and of-the-moment. Now SoHo is poised for another transformation as more traditional luxury retailers such as Zenga, Cartier and H. Stem close their doors or choose not to open space currently on the market that is ready to be snapped up by newer, fresher names on the retail scene. One extremely successful retailer that has made it in SoHo is Miss Sixty a high-end Italian jean company. The trendy apparel retailer took advantage of its "new kid on the block" status and has flourished and expanded while many others were forced to downsize Downsize Reducing the size of a company by eliminating workers and/or divisions within the company. Notes: When a company downsizes, it is attempting to find ways to improve efficiency and increase profitability. It is sometimes referred to as trimming the fat. or vacate To annul, set aside, or render void; to surrender possession or occupancy. The term vacate has two common usages in the law. With respect to real property, to vacate the premises means to give up possession of the property and leave the area totally devoid of contents. . A retail segment making waves throughout New York City is banking. Over the past year banks and other financial institutions have continued to expand and open new branch locations. Commerce Bank; Fleet Bank and Washington Mutual “WaMu” redirects here. For the Washington, DC radio station, see WAMU. Washington Mutual (or WaMu; NYSE: WM) is the United States' largest savings and loan association. , among others, have aggressively sought and secured large, visible space in major retail areas at noteworthy rental prices. Yet, for the most part, retailers across the board are more cautious today than ever before. The lackluster national economy, geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. instability and terrorism concerns have shaken the confidence of many retailers. However, even in this environment there are tremendous, lucrative opportunities for tenants that can take advantage of them. Big box retailers like Bed Bath & Beyond and Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box are currently in the market for large blocks of suitable retail space and now more than ever, landlords are willing to negotiate more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms if they can get such credit-worthy tenants to lease up their build- |
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