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By: Don Driggers
Celebrations are underway among shoppers in the Big Apple as the retail sector not only weathered the challenges of the pandemic but thrived in a way unlike other segments of the city’s commercial market, NY Post reported.
Owners who opted for lower leasing costs and shorter terms triggered a surge in demand for well-located spaces.
According to Gene Spiegelman of Ripco, there has been a notable recovery in the retail sector, with rents experiencing a significant 50% decline. Vacant restaurants and luxury fashion storefronts were among the fastest movers in this resurgence.
Dolce & Gabbana seized the opportunity by leasing the distinctive former Hermès store at 695 Madison Ave. Additionally, Prada made a substantial investment of $835 million to acquire a building at 724 Fifth Ave. and the adjacent structure at 720 Fifth Ave., once ruled by Abercrombie & Fitch. Jeff Sutton, a prominent retail figure, had plans for a new tower next to the Aman Hotel in the Crown Building, although it remains uncertain if this will materialize.
Sutton also facilitated a significant deal by selling the space now occupied by Versace at 747 Madison Ave. to the Dyson family for $135 million. Cassie Durand of CBRE highlighted the trend, stating, “A global luxury brand is going to create a long-term flagship environment that they will invest in heavily and operate themselves.” Madison Avenue, particularly from 57th to 64th streets, is experiencing positive absorption, with increased activity even between 65th and 72nd streets.
Milan-based Del Core, represented by Cassie Durand, is set to open in February at 789 Madison Ave. near East 67th Street, contributing to the resurgence of rents and attracting quality tenants to the area.
Jared Epstein of Aurora Capital Associates emphasized the revival on Madison Avenue, citing the improved rents and the leasing of space to high-quality tenants. Aurora, in collaboration with William Gottlieb Real Estate, is actively involved in the Meatpacking District retail corridor, securing leases for luxury brands like Saint Laurent.
Brandon Singer of Retail by Mona highlighted the resilience of the retail sector, especially in categories such as luxury, food, and beverage. Notable openings include Fiskers at 401 W. 14th Street, Gucci at 400 W. 14th St., and Lladró at No. 413. The trend extends to Washington Street, with Shake Shack at No. 820, a subleased space for Studs at No. 875, and potential for a new retailer at the former Intermix location at No. 812.
However, big-box stores are experiencing a slower pace of movement, leading to the availability of massive spaces. In Noho, the former Crate & Barrel space at 611 Broadway, offering 40,000 square feet, is actively seeking occupants through Ripco, with an asking rent of approximately $7.5 million per year.
