REBNY touts ‘strong’ Manhattan retail recovery — despite empty storefronts
The Latest Manhattan Retail Trends
The recent report by the Real Estate Board of New York highlights the ongoing retail recovery in Manhattan. One significant development is the upcoming launch of a massive 22,000 square-foot flagship store by luxury jeweler David Yurman at 685 Fifth Ave. This move follows Coach’s plan to relocate to 645 Fifth Ave later this year.
According to industry experts like Steven Soutendijk from Cushman & Wakefield, major deals are in the pipeline for the vacant Fifth Avenue storefronts and are expected to be finalized by the end of the year.
Key Findings from the REBNY Survey:
- The prime stretch of Bleecker Street is almost fully occupied, pushing retailers towards alternative locations like West Street.
- Fifth Avenue in Flatiron is attracting new brands, with Canada’s Garage and Cozey taking over prime spots.
- Italian fashion brands are expanding on Madison Avenue, leading to a shift towards side streets for new openings.
- Herald Square has seen a rise in average asking rents due to increased demand, with major stores like TJ Maxx setting up large spaces.
- Times Square is diversifying its offerings, welcoming non-entertainment businesses like Nan Xiang Dumplings.
Despite these positive trends, there are still notable vacancies in key areas like Midtown Sixth Avenue and parts of Fifth Avenue. Vacant storefronts, like the former Gap space on Sixth Ave, continue to remain unoccupied despite efforts by prominent retail brokers.
Areas like Fifth Avenue between East 34th and 42nd Streets also face challenges, with significant vacancies near prominent locations like the former Lord & Taylor store. These gaps raise questions about the true extent of the retail leasing recovery in Manhattan.
