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HERE IS THE SPRING REPORT OF NYC RETAIL
SPACE
To reflect this dynamic retail market-a market that has benefited
from our city’s population growth, from the continuing surge
in tourism and from the weak dollar-we have added five new corridors
to our list of Selected Major Retail Corridors. These new areas
are: 86th Street on the Upper East Side; Columbus Avenue on the
Upper West Side; Fifth Avenue south of 49th Street in Midtown; Bleecker
Street in the West Vifiage and 14th Street in the Meatpacking District
both in Midtown South.
According to our Advisory Group, owners remain optimistic that the
favorable market for retail leasing will continue as demonstrated
by the rise in asking rents for all retail space in Manhattan. In
our selected major retail corridors, we still see high asking rents
and a competitive market. Though the volume of activity is
strong, tenants appear to be taking a longer time to make a decision
and to complete deals. Average asking rents continue to rise on
Harlem’s 125th Street, the largest retail corridor in our
report. This major commercial street extends from East Harlem through
Central Harlem to West Harlem, generally from the East River to
the Hudson. Along such a long continuous corridor there will be
variations in ground floor rent. One strong pocket of activity is
the stretch west of Lenox Avenue where the highest asking rents
are clustered. Accordingly, we encourage our readers to
pay particular attention to the range of asking rents in our report.
Here are highlights from our Spring 2008 report:
• The average asking rent per square foot (psi) for all Manhattan
retail space was up 3% to $111 compared to a year ago.
• In Midtown, the average asking rent was up 9% to $145; in
Midtown South, the average asking rent was up 8% to $96, compared
to last year. The East Side
had the highest average asking rent of the major areas at $164,
a 6% increase since last spring.
• The Fifth Avenue (49th-59th) corridor had the highest average
asking rent of $1,958, with virtually no prime locations immediately
available.
• The Madison Avenue corridor had the next highest average
asking rent of $1,066, with some stores asking more than $1500 for
ground floor space.
• The average asking rents per square foot for ground floor
space for the new corridors in the report are per square foot per
year (divide by 12 months and multiply by square feet to get the
rent):
86th Street.......................................$450
Columbus Avenue............................$268
5th Avenue (42nd-49th Streets)........$704
Meatpacking....................................$462
Bleeker Street .................................$397 |