The Retail Advisory Group of the Real Estate Board of New York has reported "a noticeable increase in retail tenant interest and competition for space that has led to an increase in asking rents and activity in Manhattan particularly in its major retail corridors.
The report found that "the asking rent for all available space in Manhattan increased 4 percent to $118 per square foot since Spring, 2010" and the "Midtown and the East Side neighborhoods saw the average asking rent for all available space increase 10 percent to $149 and 9 percent to $180 since the spring of this year."
The report, however, noted that "beyond the popular and well-known shopping corridors...vacancies persist and rents have remained flat in many smaller, local shopping areas."
Fifth Avenue continues to be strong with little available. Uniglo committed to lease 90,000 square feet at 666 Fifth Avenue, said to be the largest retail lease in Manhattan.
The 42d to 49th Street stretch of Fifth Avenue has also done well:
"At the height of the market, H& M and Zara had opened showcase stores at 42nd Street. These stores anchored this stretch of Fifth Avenue, creating energy and necessary co-tenancy for other retailers to consider flagship locations south of 49th street and bringing leasing activity further south. Large blocks of space were assembled to cater to the growing demand and recent deals include Guess, Urban Outfitters and Syms/Filene. these transactions send a strong signal of optimism in the retail brokerage community."
The report said that in the Fall 2010 the average asking rent on Fifth Avenue between 49th and 59th Streets was $2,367, up 15 percent from the previous year and that on Broadway and Seventh Avenue between 42nd and 47th Street the figure was $1,700 up 107 percent from the previous year and on Fifth Avenue between 42nd and 49th Street it was $501 up 10 percent from the previous year.
On the Upper Eat Side, it said that the average asking rent on Madison Avenue between57th Street and72nd Street was $1,049 up 14 percent from the previous year and on Third Avenue from 60th to 72nd Street is was $270 up 3 percent from the previous year and on East 86t Street between Lexington and Second Avenues it was $293 down 19 percent from the previous year.
On the Upper West Side, it found that on Broadway between 72nd and 86th Streets the fiture was $312 up 10 percent from the previous year.
In the Financial District on Broadway between battery Park and Chambers Street the figure was $150, down 21 percent from the previous year, but in SoHo on Broadway between Houston and Broome Streets the figure was %26 up 9 percent from the previous year.
It noted that the New York City consumer price index this year is 238.9, up slightly from 008 when it was 235.8, adding that the New York City Office of Management and Budget has forecast that it will rise to 256.2 in 2013. In 1982-4, the index was 100.
The report found that "the asking rent for all available space in Manhattan increased 4 percent to $118 per square foot since Spring, 2010" and the "Midtown and the East Side neighborhoods saw the average asking rent for all available space increase 10 percent to $149 and 9 percent to $180 since the spring of this year."
The report, however, noted that "beyond the popular and well-known shopping corridors...vacancies persist and rents have remained flat in many smaller, local shopping areas."
Fifth Avenue continues to be strong with little available. Uniglo committed to lease 90,000 square feet at 666 Fifth Avenue, said to be the largest retail lease in Manhattan.
The 42d to 49th Street stretch of Fifth Avenue has also done well:
"At the height of the market, H& M and Zara had opened showcase stores at 42nd Street. These stores anchored this stretch of Fifth Avenue, creating energy and necessary co-tenancy for other retailers to consider flagship locations south of 49th street and bringing leasing activity further south. Large blocks of space were assembled to cater to the growing demand and recent deals include Guess, Urban Outfitters and Syms/Filene. these transactions send a strong signal of optimism in the retail brokerage community."
The report said that in the Fall 2010 the average asking rent on Fifth Avenue between 49th and 59th Streets was $2,367, up 15 percent from the previous year and that on Broadway and Seventh Avenue between 42nd and 47th Street the figure was $1,700 up 107 percent from the previous year and on Fifth Avenue between 42nd and 49th Street it was $501 up 10 percent from the previous year.
On the Upper Eat Side, it said that the average asking rent on Madison Avenue between57th Street and72nd Street was $1,049 up 14 percent from the previous year and on Third Avenue from 60th to 72nd Street is was $270 up 3 percent from the previous year and on East 86t Street between Lexington and Second Avenues it was $293 down 19 percent from the previous year.
On the Upper West Side, it found that on Broadway between 72nd and 86th Streets the fiture was $312 up 10 percent from the previous year.
In the Financial District on Broadway between battery Park and Chambers Street the figure was $150, down 21 percent from the previous year, but in SoHo on Broadway between Houston and Broome Streets the figure was %26 up 9 percent from the previous year.
It noted that the New York City consumer price index this year is 238.9, up slightly from 008 when it was 235.8, adding that the New York City Office of Management and Budget has forecast that it will rise to 256.2 in 2013. In 1982-4, the index was 100.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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