REBNY Retail Report: Asking Rents See Increases, Some More Subtle, in Prime Manhattan Shopping Corridors

Demonstrating retailers' continued interest in New York City's hot retail market, ground floor asking rents for available retail space in Manhattan's prime shopping destinations increased in the first quarter of 2015 in all but one of the 17 corridors surveyed, year over year, according to The Real Estate Board of New York's (REBNY's) Spring Retail Report. While the increases were more modest along some of the most exclusive blocks than in recent reports, the average asking rent for ground floor space on Fifth Ave., between 49th and 59th Sts., traditionally New York City's most expensive corridor, increased four% from the Spring 2014 Retail Report to $3,683. Asking rents on the ground floor on Madison Ave. between 57th and 72nd streets also saw an increase with the average asking rent per s/f increasing by three% to $1,700, compared to last spring. "Our retail advisory group reports asking rents stabilizing in some areas; retailers both international and domestic continue to show interest and are making deals in the City's most highly trafficked shopping destinations on Fifth Ave., Madison Ave. and in Times Sq.," said Steven Spinola, REBNY president. "What our report found is that the steepest increases in asking rents were in other popular shopping destinations, some of which have concurrently seen an uptick in residential development." The biggest increases in asking rents for ground floor retail space this quarter were in other popular corridors including East 57th St. between Fifth Ave. and Park Ave. where rents surged 60% to $1,600 per s/f and Third Ave. between 60th and 72nd Sts. where average asking rents surged 39% to $363 per s/f. Broadway between 72nd and 86th streets also saw a significant boost in asking rents climbing 37% to $390 per s/f. The East 86th St. corridor between Lexington Ave. and Second Ave. which has undergone a retail transformation also saw a solid increase in asking rents up 19% to $456 per s/f, as a result of new residential development catering to growing families. Other notable corridors this quarter include lower Fifth Ave. between 42nd and 49th Sts., which saw rents jump 17% to $1,200 per s/f. The Meatpacking District corridor, along 14th St. between 9th and 10th Aves., also saw a healthy 10% increase with greater foot traffic from the High Line, Chelsea Market and the recent opening of the Whitney Museum of American Art. REBNY's Retail report compiles data about asking rents for available space provided by a broad cross-section of the city's leading retail brokers. The report is compiled twice a year in the spring and fall.