Retailers are Fighting to Find Space in Prime NYC ‘Hoods
Competition is Fierce in Manhattan’s Prime Neighborhoods
Don’t be fooled by those empty storefronts – retailers are fighting to find space in prime Manhattan neighborhoods. According to Matt Chmielecki of CBRE, "Where there is good product, there is competition for it."
Soho and the Flatiron are in High Demand
In Soho, prime corners on Prince and Spring streets have been snapped up, while nearby Broadway is getting tight. The space crunch is forcing tenants to look further south. Club Monaco is leaving its 19,170-square-foot location on the ground and lower levels at 160 Fifth Avenue, which is being marketed through Brandon Singer at Retail by Mona with a ground asking rent of $450 per foot.
Newcomers and Established Brands are on the Hunt
Among those still looking for spaces are the Miami imports, Carrott Express and Pura Vita. Retailers seeking storefronts should head for Lexington Avenue near Bloomingdale’s and along West 34th Street, where there are more vacancies and lower rents.
Barney’s Closure Spurs New Interest in Madison Avenue
The closure of Barney’s at 660 Madison Avenue has sparked new interest in the area. According to Steve Soutendijk of Cushman & Wakefield, "We were sure that Barney’s closing was going to be the end of Madison Avenue, and yet it is another example of small stores generating activity." If the large Barney’s space is cut into smaller stores, Soutendijk says they would quickly lease due to demand in that area, which straddles the world of offices and luxury apartments.
New Developments and Renovations
The office building at 625 Madison Avenue is being demolished and rebuilt as a 1,220-foot-tall, 66-story, 101-unit luxury condo tower designed by SLCE architects, with its eastern blockfront between East 58th and 59th streets, set to be chock-full of new stores. Moncler is relocating from 650 Madison Avenue to a 24,000-square-foot location at 767 Fifth Avenue.
Gary Barnett’s 655 Madison Avenue Project
Gary Barnett is razing 655 Madison Avenue to build a 37-story condo with 62 units that will likely include retail.
Retailers are Looking for Immersive Experiences
Don’t be surprised if the snow gear retailer, Moncler, adds a ski chalet-like café or other immersive experiences in its new location. Dining areas in Tiffany’s new store, as well as the flamingos and food at Louis Vuitton’s temporary one at 6 E. 57th Street, have been wins for LVMH. Meanwhile, LV is making its corner great again with a delightful suitcase facade safety wrap at 1 E. 57th Street.
Large-Scale Tenants are on the Hunt
Larger space users are also on the prowl to create immersive experiences. The Path Entertainment Group has already leased 11 Times Square for a yet-to-be disclosed immersive experience and expects to bring "Dirty Dancing: The Musical" to Broadway this fall.
Conclusion
Retailers are fighting to find space in prime Manhattan neighborhoods, with competition for good product driving demand. As new developments and renovations bring new opportunities, retailers are looking for immersive experiences to attract customers and drive sales.
Frequently Asked Questions
- What is driving the demand for retail space in prime Manhattan neighborhoods?
- Competition for good product is driving demand.
- Where should retailers look for available space?
- Retailers should head for Lexington Avenue near Bloomingdale’s and along West 34th Street, where there are more vacancies and lower rents.
- What is happening on Madison Avenue?
- The closure of Barney’s has sparked new interest in the area, with demand for smaller stores and potential for new developments and renovations.
