Manhattan retail hotter than ever as asking rents climb

Retailers continue to do well according to the Advisory Group. In addition European retailers have been eager to establish a presence in New York and have been a key factor in the market. Another factor in the growth of asking rents is new development. These projects are offering space today that will not be available for two years and are pricing in anticipation of continued growth. A robust retail market and a vibrant local economy have resulted in a solid rise in asking price for retail space throughout Manhattan.In analyzing the retail corridor data, the AdvisoryGroup has taken note of unusually high asking rents that likely have factored in potential sign income for these stores as well as surprisingly low asking rents for stores with an address on the corridors but with no actual corridor street frontage. Here are the highlights of our fall 2007 report:The average asking rent per s/f for all Manhattan retail space was up 26% to $133 compared to a year ago. Downtown average asking rent for all space increased 18% to $109, the first time rents have crossed the $100 per s/f mark. Fifth Ave. (49th to 59th St.) recorded the highest average ground floor price of $1,250 per s/f, followed by Madison Ave. (57th to 72nd St.) at $1,108 per s/f. These represented increases of 21% and 22%, respectively. Broadway (42nd to 47th St.) had the highest percentage increase for ground floor space of 107%, followed by Broadway (Battery Park to Chambers) of 88%. The REBNY Retail Report Advisory Group includes: Robin Abrams, The Lansco Corp.; Benjamin Fox, Winick Realty Group; Andrew Goldberg, CBRE; David Green, Cushman & Wakefield; Joanne Podell, Cushman & Wakefield; Fred Posniak, W&M Properties of New York, LLC; Jeffrey Roseman, Newmark Knight Frank; Alan Victor, The Lansco Corp.; and Chase Welles, Northwest Atlantic Realty Services, LLC. The Retail Report provides objective, comprehensive information about asking rents and market trends in Manhattan. Issued twice a year-spring and fall-the report is a project of the REBNY Stores Committee. The report presents retail space information by geographical area and focuses on the asking rent of the ground floor space on the major retail streets.