REBNY reports rents rocketing in red hot retail market.Retail rents for major corridors downtown and in northern Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). surged in the last six months with asking rents for ground floor space climbing 45% for a major downtown corridor and 54% in northern Manhattan, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. The Real Estate Board of New York's (REBNY REBNY Real Estate Board of New York ) Spring Retail Report. "The surge in asking rents for lower Broadway Lower Broadway is a street that is a focal point of Nashville, Tennessee. The street runs east and west between Interstate 65 and the west bank of the Cumberland River. is a positive sign that clearly demonstrates retailers' renewed confidence in the neighborhood, which is undergoing a major retail revival," said Steven Spinola, REBNY president. "Retail rents in northern Manhattan's 125th Street corridor have also been strong. With an influx of major retailers and the surge in asking rents reflected in this report, it is clear that more retailers are considering it one of Manhattan's prime retail spots." The retail corridor on Broadway between Battery Park and Chambers Street Chambers Street is a street in Edinburgh, Scotland, at south of the Old Town. The street is named after William Chambers of Glenormiston, the Lord Provost of Edinburgh who was the main proponent of the 1867 Edinburgh Improvement Act, which gave permission for the street's saw the average asking rent for ground floor space rise 45% to $126 per square foot, while SoHo's main strip, Broadway between Houston and Broome, had a rent surge of 31% to $212 per square foot. The median asking rent for the Broadway corridor in SoHo rose 46% to $226. "It is encouraging that the Broadway corridor in Soho has rebounded, particularly since the opening of the Bloomingdale's store last year," said Richard Hodos, President of Madison HGCD. "We are seeing some of this energy filter into other Soho streets (Prince, Greene, Spring, and Mercer mer·cer n. Chiefly British A dealer in textiles, especially silks. [Middle English, from Old French mercier, trader, from merz, merchandise, from Latin merx ), although certain sections of West Broadway remain relatively weak." Adaptability a·dapt·a·ble adj. Capable of adapting or of being adapted. a·dapt  a·bil is the key to doing business in Manhattan and most
retailers want in the game, whatever the cost.
"In other sections of the city--particularly along the main shopping corridors--space is difficult to find, and the banks have put the squeeze on traditional apparel retailers who have to maintain rents within an occupancy cost Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal range appropriate to their sales levels," said Hodos. "With that said, there are plenty of tenants willing to pay the rents--whether they are new tenants entering Manhattan for the first time or tenants who have done business here for years." Gene Meer, president, Friedland Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. has been in the business for 25 years, and agrees Wall Street is booming and competition for corner space is fierce, with banks leading the pack. "Within the last 18 months, rents around Wall Street, and especially below City Hall, have been increasing," said Meer. "Rents have gone up from an asking of $100 s/f to $150 s/f for a corner, because the tenants that are coming downtown are financially sound and are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. 1,500 to 2,000 s/f spaces. And if there is competition for that type of space you are seeing higher rents." In Northern Manhattan, rents for the 125th Street corridor from river to river jumped 54% to $90 per square foot, the largest increase yet for the neighborhood since REBNY began tracking this corridor. Several reasons have made the Northern Manhattan area a must-have location, said Shimon Shkury, a partner at Massey Knakal. "One of the reasons is the sell out of free-market condominiums units that brought out a whole new population that require a significant amount of services," said Shkury. With higher incomes, comes a higher grade of retail, as well. "The area is going from mom and pops Mom and Pop An adjective denoting a small-scale and family-like atmosphere, often used to describe these types of businesses and investors. Notes: A mom-and-pop business is typically a small family-run business. to the Starbucks of the world. It's also due to the city's investment in Harlem, mostly in middle income, which is a shift from lower-income." Barry Fishbach, executive vice president of Robert K. Futterman, said it all boils Boils Definition Boils and carbuncles are bacterial infections of hair follicles and surrounding skin that form pustules (small blister-like swellings containing pus) around the follicle. Boils are sometimes called furuncles. down to supply and demand, particularly on the east side of Harlem "There's been a lot of development, especially along 125th Street and as far 3rd Avenue--new housing built, redevelopment, and high-rises are going up," Fishbach said. "The space is scarce along the primary streets and as the demand increases the rents increase." As the REBNY report shows, there's no doubt that the retail market has rebounded in several areas of the city. "The retail market 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. is extremely strong," said Robin Abrams, executive vice president of The Lansco Corporation and co-chair of REBNY's retail committee. "There is a lot of activity, and asking rents are aggressive due to competition for the prime space--primarily from the Bank tenants. "Space in SoHo, the Meatpacking meatpacking or meat-processing, wholesale business of buying and slaughtering animals and then processing and distributing their carcasses to retailers. The livestock industry is among the largest in the world. District, Union Square, 34th Street, Times Square, the Plaza District and other areas continues to be in demand as the national chains and the international tenants who were exploring the market are now confident enough to commit for space." The report also recorded the following findings: The ground floor asking rent on Fifth Avenue between 14th and 23rd streets in Flatiron was up 38% to an average of $189 per square foot. Market area asking rents, which surveys all available retail space, also experienced gains: Overall Manhattan average asking rent for all space rose 6% to $103 per square foot. Downtown average asking rent for all space increased 14% to $82 per square foot. The West Side saw a 13% increase in average asking rents for all space to $127 per square foot. The East Side had a 4% increase to $160 per square foot. |
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