2016 Year in Review: Jedd Nero, Avison Young

Jedd Nero, Avison Young

Name: Jedd Nero

Company Name: Avison Young

What was your most notable project, deal, transaction or professional achievement in 2016?

I specialize in Manhattan retail and in late spring 2016, I was involved in one of the year’s most significant retail sector transactions. I helped arrange a new lease and relocation to 701 7th Avenue, also known as 20 Times Square, for the Hershey’s Chocolate World flagship location. The new space for the Hershey brand will be three times as large as the existing Chocolate World at 48th and Broadway. While the current location remains a popular Times Square attraction, an expansion was needed to handle the more than 3 million visitors the site draws annually.

What project, transaction, market trend or product had the greatest impact on your industry this year?

I believe there are several market trends impacting retail, but e-commerce continues to turn the sector upside down. While there will always be a place for brick and mortar stores, all retailers must embrace the importance of balancing shopping online and new technology. It’s interesting to note that many companies that began online and are now opening stores to complement their e-commerce offerings are showing early signs of success. Additionally, the growing trend of temporary “pop up” stores is here to stay. Landlords are starting to recognize this trend and are considering short term leases for pop up store tenants – these shorter leases offer an opportunity for landlords to generate cash flow while waiting for the market to pick up and rents to increase. 

How will you be supercharging your productivity in 2017?

You have to remain supercharged at all times to succeed in a competitive sector like retail – but it becomes even more important in an uncertain market like 2017 is shaping up to be. I lead a team of retail experts at Avison Young, and we remain laser focused on seeking new opportunities and responding to the unique needs of both our current tenant and landlord clients.

What emerging trends will drive investment and development in 2017?

The 2016 retail sector was relatively soft and the 2017 market, particularly in the early part of the year, will remain the same.  The uncertainties that come with a new administration is causing retailers to take a “wait and see” approach. At the moment, it appears New York has become a tenant’s market – rents have been too high for quite a while and we are in the midst of an industry correction. Non-traditional retail will also continue its emergence in the New Year.