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.
“I think what’s so interesting about the #MeToo movement and this whole new wave of feminism in general, is that women are finally seeing, ’Oh I can start my own company, oh I can lear to code, oh I can leave my nine-to-five job and do the thing I want to do,” said @brooklyndecker ahead of her @sxsw talk for @createcultivate. The former model took the stage to share wisdom about networking and female-driven entrepreneurship. #wwdeye #sxsw (📷: @jgreenery)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech at the @sxsw conference for @createcultivate, the online platform and conference series for women. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.