The best Manhattan shopping corridors continue to thrive.
Ground-floor asking rents on Fifth Avenue between 49th and 59th Streets have risen to $3,052 since the fall, a 13 percent increase, according to a study by the Real Estate Board of New York. However, no leases have been signed there since fall of 2012, the study pointed out. As reported in WWD Tuesday, Valentino will open at 693 Fifth Avenue, formerly occupied by Takashimaya, but that deal could have happened after the study was completed.
Are landlords being greedy and will they have to lower asking rents? “When rents seemed very high, landlords have found tenants willing to pay those prices,” said Mike Slattery, senior vice president of research at REBNY, adding that retailers believe they can be profitable. Retailers considering large sites for flagships may also take longer to make a decision and landlords have been willing to wait.
Times Square on Broadway and Seventh Avenue between 42nd and 47th Streets had the biggest increase in asking rent since the fall, a 55 percent leap to $2,175, due to the limited supply of available square footage.
REBNY’s report of the city’s highest-profile shopping corridors for the last six months revealed increasing foot traffic and booming tourism — 52 million visitors last year. Those positive trends, along with the improving job market, contributed to higher asking rents.
The growing tech sector created demand downtown, while upscale residential development in Midtown brought calls for better shopping options.
Retailers have been pushing the boundaries of prime retail streets in an attempt to find more affordable real estate. There, too, rents continued to rise due to the dearth of space and the high cost of prime corridors.
Asking rents on Fifth Avenue south of 49th Street rose 7 percent to $1,092. Broadway in the Flatiron District climbed 18 percent to $322, and Bleecker Street between Seventh Avenue South and Hudson Street rose to $540, also an 18 percent increase.
“We’re seeing retailers being more amenable to locations,” Slattery said. “Those moves always entail a certain amount of risk, but they’re prudent risks. They feel their presence will be part of the [street’s] transformation.
“It will be interesting to see whether or not Fifth Avenue between 34th and 42nd Streets will have that kind of change,” Slattery said. “There’s a push to continue to find space. If 42nd Street is a dividing line, then maybe being south of 42nd Street isn’t so bad either.”
In terms of prime streets, asking rents for available ground-floor space on Madison Avenue between 57th and 72nd Streets increased 36 percent to $1,325, since the fall. Fifth Avenue between 14th and 23rd Streets in the Flatiron District saw asking rents climb 18 percent to $413 since the fall. In the Meatpacking District, asking rents grew 10 percent, to $356. Broadway between Houston and Broome Streets in SoHo jumped 38 percent to $750, while Broadway between Battery Park and Chambers Street shot up 52 percent to $232, perhaps in anticipation of the throngs of tourists who will visit once all the construction is completed.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion