{"id":2172,"date":"2024-10-14T01:42:51","date_gmt":"2024-10-14T05:42:51","guid":{"rendered":"https:\/\/citystuff.com\/new-york\/?p=2172"},"modified":"2024-10-14T01:42:51","modified_gmt":"2024-10-14T05:42:51","slug":"nyc-retail-leasing-shows-signs-of-rebound-after-covid-carnage","status":"publish","type":"post","link":"https:\/\/citystuff.com\/new-york\/2024\/10\/14\/nyc-retail-leasing-shows-signs-of-rebound-after-covid-carnage\/","title":{"rendered":"NYC Retail Leasing Shows Signs of Rebound After COVID Carnage"},"content":{"rendered":"<p><strong>Manhattan&#8217;s Retail Scene Shows Glimmers of Hope<\/strong><\/p>\n<p>It might be too early to pop the Champagne corks, but Manhattan&#8217;s big-picture retail leasing scene shows strong signs of putting the pandemic carnage behind it.<\/p>\n<p><strong>Pandemic&#8217;s Impact<\/strong><\/p>\n<p>Even before anyone heard of COVID-19, online shopping depressed demand for brick-and-mortar stores by perhaps 10%. Lockdowns made things worse. However, recent third-quarter Manhattan surveys by JLL and Cushman &amp; Wakefield found significantly lower storefront availability of 14.7% and 13.9%, respectively, compared with peaks in the mid- and upper-20% ranges in 2021.<\/p>\n<p><strong>Signs of Revival<\/strong><\/p>\n<p>There seem to be reasons to justify landlords&#8217; and brokers&#8217; growing confidence in a healthier market. JLL claimed the amount of available store space in the city &quot;fell to its lowest level on record,&quot; which is hard to swallow for anyone who&#8217;s strolled through the Flatiron District, which was rocked by the closing of several big-box stores. It all depends on how and what you count. CBRE said retail leasing was actually down 25% compared with 3Q in 2023.<\/p>\n<p><strong>Tenant and Landlord Markets<\/strong><\/p>\n<p>Cushman superbroker Joanne Podell said, &quot;Activity in most trade areas is really robust. What&#8217;s interesting is, I think we are at equilibrium. I don&#8217;t think you can define what we are experiencing as either a landlord or a tenant market.&quot; Hodos noted that some areas in particular &quot;are robust and thriving. In Soho, it&#8217;s very hard to find space on Greene or Prince Streets.&quot;<\/p>\n<p><strong>Recent Transactions<\/strong><\/p>\n<p>We recently reported major deals for Bonhams auction house, Italian fashion brand Moncler, Five Iron Golf, Socceroof, and Carnegie Diner and an unnamed Greek cafe. Additions include:<\/p>\n<ul>\n<li>A new bagel\/pizza restaurant concept called Bagizza! will soon open at former Joseph Abboud store at 424 Madison Ave.<\/li>\n<li>London-based clothing giant Primark will launch its first Manhattan store with 54,000 square feet at 150 W. 34th St. near Penn Station, replacing Old Navy.<\/li>\n<li>Popular eatery Rosa Mexicano is taking over the former Ed&#8217;s Chowder House space in the Empire Hotel on Broadway at West 63rd Street \u2014 12,000 square feet, mostly on the second floor, that was dark for six years.<\/li>\n<li>Fast-growing Italian chain La Pecora Bianca will replace Rosa at its old home on Columbus Avenue nearby.<\/li>\n<li>Brooks Brothers signed for a 9,500 square-foot store at L&amp;L&#8217;s 195 Broadway \u2014 a vote of confidence that FiDi office workers and residents still want to dress up.<\/li>\n<li>The elegant former home of Joseph Abboud at 424 Madison Ave. will soon be home to Bagizza! \u2014 a bagel\/pizza restaurant concept in more than 4,000 square feet.<\/li>\n<\/ul>\n<p><strong>CBRE&#8217;s Trends<\/strong><\/p>\n<p>CBRE identified two 3Q trends:<\/p>\n<ul>\n<li>&quot;New-to-Market retailers leasing their first brick and mortar outposts in Manhattan&quot; accounted for 21% of quarterly leasing volume.<\/li>\n<li>&quot;Big fine art and experiential tenants&quot; were major drivers of activity.<\/li>\n<\/ul>\n<p><strong>Conclusion<\/strong><\/p>\n<p>Rents have recovered, although not to pre-pandemic levels. &quot;And that&#8217;s a good thing,&quot; said Hodos. &quot;The asking rents on Madison Avenue for example were stratospheric and didn&#8217;t even come down after the pandemic hit. Now, the difference between bid and ask is much smaller.&quot;<\/p>\n<p><strong>FAQs<\/strong><\/p>\n<p>Q: Is the retail leasing scene in Manhattan showing signs of recovery?<br \/>\nA: Yes, recent surveys by JLL and Cushman &amp; Wakefield found lower storefront availability than in previous years.<\/p>\n<p>Q: What are the signs of a healthier market?<br \/>\nA: Recent transactions, growing confidence among landlords and brokers, and a reduced difference between bid and ask rents.<\/p>\n<p>Q: What are the trends in the retail market?<br \/>\nA: CBRE identified two key trends: new retailers leasing their first brick-and-mortar outposts and big fine art and experiential tenants driving activity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Manhattan&#8217;s Retail Scene Shows Glimmers of Hope It might be too early to pop the Champagne corks, but Manhattan&#8217;s big-picture retail leasing scene shows strong signs of putting the pandemic carnage behind it. Pandemic&#8217;s Impact Even before anyone heard of COVID-19, online shopping depressed demand for brick-and-mortar stores by perhaps 10%. Lockdowns made things worse. [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-2172","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-real-estate"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/newspress-collage-21qf69plr-1728843705703.jpg?quality=75&strip=all&1728829491&w=1024&w=1024&resize=1024,682&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/posts\/2172"}],"collection":[{"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/comments?post=2172"}],"version-history":[{"count":1,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/posts\/2172\/revisions"}],"predecessor-version":[{"id":2174,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/posts\/2172\/revisions\/2174"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/media\/2173"}],"wp:attachment":[{"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/media?parent=2172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/categories?post=2172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/tags?post=2172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}