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.
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)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion