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Recession has ended, says retail report.

Garrick-Aug Associates Store Leasing, Inc. reported that Manhattan's retail real estate recession has ended.

The real estate firm's findings were based on indicators contained in Garrick-Aug's just-issued Year-End 1992 Manhattan Retail Space Report.

According to the report:

* 488 stores were leased in Manhattan during the last six months of-1992. Total for the entire calendar year: 891 stores in leased in Manhattan, comprising 981,856 square feet of space Because of strong market conditions, the supply of retail space - total number of stores available - decreased 13 percent during the last six months of 1992, from 2,915 stores at mid-year to 2,612 at year-end

* Total store space available in Manhattan at year-end, 1992, is 6.645 million square feet, a 9.4 percent decrease from year-end, 1991

For the first time in several years, average asking rentals gained 2.5 percent during the second half of 1992, from $40.50 per square foot at mid-year, 1992, to $41.50 per square foot at year-end, 1992.

According to the report, luxury retailing still has some problems in apparel and home furnishings product lines. Today's strengths are in promotional and value or discount retail services. These groups are holding their own in today's market. The middle-priced restaurants and budget food businesses are reporting increased sales.

The Garrick-Aug Rent Negotiability Factor (RNF) indicates that the average difference between asking rent and the negotiated rent is down 28 percent, another indication that the market has bottomed out. In a sample of 171 retail leases negotiated by Garrick-Aug Associates in Manhattan during the last six months of 1992, the average asking price per square foot was $63 and the average contracted price in leases negotiated by the firm in Manhattan was $46.

The United Nations Federal Credit Union, (UNFCU), an agency of the United Nations, demonstrated its ongoing commitment to a New York presence with a recent headquarters relocation and expansion in Midtown Manhattan.

One of the fastest growing top credit unions, UNFCU signed a lease for 20,000 square feet taking two full floors at 820 Second Avenue. The 10 year leasing transaction was negotiated by Melvin Wallis, first senior director, Greg Smith, senior director and Jodi Pulice, senior director of Sylvan Lawrence Company, Inc. The Credit Union will also retain offices at 2 U.N. Plaza.
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Title Annotation:Garrick-Aug Associates Store Leasing Inc. reports on economic conditions of retail real estate industry in New York, New York
Publication:Real Estate Weekly
Date:Feb 2, 1993
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