The Real Estate Board of New York releases Manhattan Retail Report

Retail asking rents for ground floor space along some of the borough's prime shopping corridors have risen notably compared to last year, while others are seeing declines, according to a report released by The Real Estate Board of New York (REBNY). The report found the biggest percentage increases in average asking rents for ground floor space in TriBeCa on Hudson St. from Chambers to Canal Sts., where asking rents increased 60% to $120 per s/f. Herald Sq. average retail rents jumped 38% on West 34th St. between 5th Ave. and 7th Ave. to $643 per s/f, and on the Upper West Side on Broadway between 72nd St. and 86th St. average asking rents climbed 17% to $309 per s/f. REBNY's report, one of the most comprehensive assessments of retail asking rents in the borough, found that overall average asking rents for all available retail space are down 3% to $129 per s/f compared to the same time last year. "The report demonstrates mixed results, with some prime shopping corridors showing strong increases in asking rents and others experiencing declines," said Steven Spinola, REBNY president. "The advisory group, made up of some of the city's leading retail brokers, notes that while the retail market has slowed in the last few months, tenants are still leasing space and deals continue to be made." "Further, the increases in asking rents in prime areas like TriBeCa, Herald Square and the Upper West Side, demonstrate that retailers still want to be in Manhattan. Despite the turmoil in the marketplace, asking prices for prime retail space in Manhattan's most recognizable shopping areas have not been impacted," Spinola said. Prime shopping corridors that saw declines in asking prices compared to last year include: Flatiron on Fifth Ave. between 14th and 23rd Sts. where asking rents were down 7% to $276 per s/f, and on the East Side on Third Ave. between 60th and 72nd Sts. where asking rents were down 6% to $287 per s/f. Also, in Midtown on Broadway and 7th Ave. between 42nd and 47th Sts. asking rents for ground floor space were down 3% to $775 per s/f. However, the report found that East Side retail space (ground floor and other) had asking rents increase 11% to $190 per s/f from a year ago, and Midtown South overall reported a 6% increase to $111 per s/f compared to last year. Spinola said, "The analysis of asking rents for retail space in this report is based on availabilities as of September 30 and may not reflect the turmoil in the financial markets in October. However, asking prices for retail space do not fluctuate like stock prices and we do not anticipate any dramatic shifts over the next few months." "Asking rents in the prime retail corridors continue to show that the market is strong despite the nationwide downturn. In fact, in the five new corridors that this report began tracking in the spring, the average asking rents for available ground floor space on 86th St., Columbus Ave. and the Meatpacking District are up compared to our initial analysis of the area. While Manhattan asking rents are slightly down overall, clearly the prime shopping districts remain coveted locations for retailers," he said. The REBNY Retail Report is issued twice a year in the spring and fall. Findings are reviewed by an advisory group that distills and analyzes the data. The Real Estate Board of New York is one of the city's leading real estate trade associations with more than 12,000 members. REBNY represents major commercial and residential property owners and builders, brokers and managers, banks, financial service companies, utilities, attorneys, architects, contractors and other individuals and institutions professionally interested in the city's real estate. REBNY is involved in crucial municipal matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes and legislation. In addition, REBNY publishes reports providing indicators of market prices for both the residential and commercial sectors.