After the last year of rents falling for retail spaces in New York City, many shopping areas have now stabilized, and some have even experienced price increases, according to a recent report by the Real Estate Board of New York (REBNY).
Since the fall, five major retail corridors, prime Madison, prime Fifth, Third Avenue, Broadway on the Upper West Side and Harlem’s 125th Street, have had average asking rates go up or remain the same, according to the new Spring Retail Report released by REBNY. However, other shopping hubs in Manhattan have seen rent rates decline even more since last fall.
REBNY president John Banks said, “The findings from our report and insight from our advisory group point to developments in the market that offer reasons for optimism.”
According to The Post, “Fifth Avenue’s most expensive retail swath, which runs from 49th to 59th streets, carries rents of $3,900 per square foot, which is 17 percent higher than last spring’s $3,324, and they have remained flat since last fall. Along the best stretch of Madison from East 57th to 72nd streets, rents are down 4 percent from last spring’s $1,446 per square foot, but they’re up 3 percent since the fall’s $1,348 per square foot to a current $1,390. Despite politicians’ worries about vacancies, rents on Broadway’s Upper West Side corridor from West 72nd Street to 86th Street rose 12 percent, to $325 per square foot, since last fall’s $291, and they’re up 3 percent year-over-year from $315 in the spring of 2017.”
The neighborhoods parallel to Broadway on Columbus Avenue between 66th and 79th streets did not do as well as the shops on Broadway. Last fall, retail rents on Columbus experienced a 12 percent decrease to $304 per square foot from $344, and since fall it declined yet another 10 percent.
Last spring rents fell 26 percent from $356 to $264 per square foot, as businesses turned over leases along Third Avenue between 60th and 72nd streets. However, as new big tenants, like Target, signed leases, the area managed to pull an increase of 1 percent $261 per square foot last fall.
By: Zelma James