Never mind the empty former Barneys building, the long-vacant Times Square corner of 701 Broadway on West 47th Street, and all the other dark storefronts. Manhattan’s pandemic-hit retail rental market has finally reached a turning point, according to CBRE’s bright new third quarter report.
‘Turning Points’ includes improved metrics such as average asking rent increase (2.2%) compared to the previous quarter, a key barometer of landlord trust and first increase since Q4 2016 It was Across 16 major corridors tracked by CBRE, his ground floor vacancy rate for direct rent decreased by his 5%.
According to CBRE, activity was particularly prominent in Grand Central, Flatiron and Union Square, which saw new transactions and renewals at 68,000 square feet and 56,000 square feet, respectively.
Retail landlords and brokers have been fueled by the resurgence of tourism and live entertainment. Increase in employees returning to the officethe CBRE report.
The findings are undeniably good news. Still, CBRE noted that some of the new leases are for pop-ups (e.g. interactive art installations “immerse yourself in wonderland9 months at 529 Fifth Ave. and short-term sublet (3 years Express at 129 Fifth Ave.)
Many of the “restaurant” deals were for unglamorous fast-casual spots like Wendy’s replacing Pret a Manger at 24 W. 23rd St.
From Realty Check’s perspective, the massive former Barneys mansion on Madison Avenue and East 60th Street Vacant And much of Eastern ’40s and ’50s Madison (not one of CBRE’s tracked corridors) seems to have more empty stores than occupied stores.
Interestingly, retail in 2022 alternates between thriving and struggling regions. Broadway, between Canal and Houston streets, is mostly rented out along with the rest of SoHo, but Broadway is a different story. South of the Canal, if not in another world, there are acres of empty space on the block above City Hall.
Of course, long before COVID-19 hollowed out major business districts, the retail industry was being hit hard by online shopping. The damage isn’t limited to Manhattan.
London is at least as international a shopping mecca as New York. But after visiting the British capital more than 20 times over the years, I had never seen so many ‘To Let’ signs as I did last week. located in the famous shopping district of
Big cities still have a long way to go before they can regain the retail scene they had before COVID 19. But CBRE’s report makes clear that a temporary and incomplete recovery is underway in the Big Apple.