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.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)