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Fifth Avenue Retail Rents Break Record

08/13/2013
Published By: The Retail Report
 
The average asking rent for the Fifth Avenue retail corridor between West 49thand West 59th streets has crossed over $3,000 per square foot, the highest in New York City. The asking rents hit $3,050 per square foot, up 22% in one year. This is the first time a Manhattan retail corridor has registered averageasking rent higher than $3,000.

“There was a time when $600 per square foot was considered outrageous on Fifth Avenue,” Richard Hodos, executive vice president of CBRE Retail Group, told The Commercial Observer. “Putting inflation aside, it speaks to the fact that New York is a world class city.”

Despite the record-breaking high asking prices, demand is still high for retail space in the area, as indicated by deals like Ralph Lauren, which recently took 38,000 square feet at 711 Fifth Ave., and Valentino, which leased 20,000 square feet at 693 Fifth Ave. Additionally, British retailer Topshop has been looking along Fifth Avenue for its second New York City location in order to be near competitors such as UNIQLO and H&M.

Asking rent numbers are specific to ground floor space and represent a significant premium to lower and second floor space.

[Crain's New York]

[Commercial Observer]

Release Date08/13/2013 - 07:00

Source

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