New York City is a hot town with hot leasing!
August 8, 2011 - Shopping Centers
Was I glad about summertime recently? Thank the retail gods that sales and leasing have been as hot as the weather!
Shoppers remain out in force, taking advantage of the sunshine, and some exception end-of-season bargains. The result: June retail sales rose 6.9% over last year, according to the International Council of Shopping Centers' Chain Store Sales Index. Even when higher fuel prices are excluded, sales rose 5.5%, well above what most analysts, and even the chain's themselves, expected. Apparel did exceptionally well, rising 5.5% year-over-year, and discounters reported a 4.6% gain. Continuing the patterns seen throughout the recovery, luxury stores saw the greatest increases, with sales rising 9.7%.
The weather helped, as did a focus on value as retailers began to clear the decks for back-to-school merchandise. The U.S. Commerce Department observed that a drop in gas prices from May to June also helped boost shops nationwide.
As I write, it's too early for July sales figures, but I expect that stores and restaurants will benefit from people escaping the heat by shopping and dining anywhere but at home (who wanted to cook?). We'll see. Meanwhile, consumer confidence remains slightly erratic, dipping 3.2 points in June, then rising 1.9 points in July. Once the national debt situation is resolved and the news is filled with more positive news, I suspect consumers will feel better as well.
Some big news continues on the leasing front: Apple has finally confirmed its location at Grand Central Terminal, taking a whopping 23,000 s/f at what is now Charlie Palmer's Metrazur. The store will be Apple's largest, leaving lots of room for geniuses and shoppers. The tech giant also is opening a temporary store at 72 Greene St. as it renovates its Soho flagship. Canada's Joe Fresh is continuing its expansion-from a pop-up in East Hampton to 510 Fifth Ave., 110 Fifth Ave., and 71st St. at Madison Ave. EMS is coming to the Laureate building at 2150 Broadway. Ghurka is relocating from the Plaza Retail Collection to a St.-level location at the Sherry Netherland.
Tumi will debut at the Apthorp this fall. American Home is coming to 2406 Amsterdam Ave. Kate's Paperie will open at 411 Lafayette St. Ricky's continues its expansion around the city at 2385 Broadway. Grown & Sewn's classic men's wear is at 116 Franklin St. Ercole's furniture will be found at 152 West 26th St. Looking for desks and office chairs? Consider D2 Office Furniture at 150 East 39th St. Jeweler Diana Warner Studio has taken both retail and office space at 42 East 21st St. Adidas has opened its second SLVR shop in New York at 141 Eighth Ave. Gant Rugger debuted its third store in New York at 25 Prince St. Reports are that Dolce & Gabbana is taking 715 Fifth Ave. for a flagship space. American Eagle Outfitters has opened 77kids, for boys and girls around 10 years old, inside its Times Sq. flagship.
Lastly, we should all bid a fond farewell to Borders, which fought valiantly for survival in this ever-changing retail market. I fully expect its spectacular locations at Columbus Circle and near Penn Station to be re-leased quickly to the new and amazing.
After all, amazing retail is the one thing we can always count on in New York!
Faith Hope Consolo is the chairman of Prudential Douglas Elliman's Retail Group, New York, N.Y.