Average asking rents in the first quarter either remained stable or increased for 10 of Manhattan’s 11 major retail corridors.
That’s according to CBRE’s first-quarter recap, “Manhattan Retail.”
Andrew Goldberg, a broker at CBRE, said, “The market report for all neighborhoods is either trending up or flat off of last year’s highs. With spending exceeding 2007 levels, business in Manhattan is very strong.”
Goldberg represented Valentino in its long-term 20,000-square-foot lease at 693 Fifth Avenue, between 54th and 55th Streets, at what was known as the Takashimaya Building. Thor Equities acquired the 20-story building in 2010. The space leased by Valentino, with three floors of selling space plus the basement, will be home to the Italian firm’s largest flagship in the world. Set to open in summer 2014, Valentino will install a new facade, and British architect David Chipperfield will develop the look of the store.
According to Goldberg, rents along Fifth Avenue are averaging $3,000 a square foot. The high ranges up to $3,500 and the low at $2,400.
One area seeing some activity is Madison Avenue. “For a while, there was a slowdown among the luxury brands that [have stores there]. There’s been pent-up demand, and now these brands are making commitments. It will continue, but the continuation is limited by the supply of space. There’s no shortage of demand, but there is a shortage of [available] space,” Goldberg said.
Right now, the average asking rents for Madison Avenue locations from 57th Street to 72nd Street are more than $1,500 a square foot, with the high at $2,000 and the low ask at $1,200. “A smaller retail space at the southern end of that market with good frontage would be at the higher end, while larger spaces with limited frontage would be at the lower end” of the asking rental range, he said.
SoHo has seen a huge increase in asking rents, Goldberg said. Rent averages $760 a square foot, but in the area along Broadway between Houston and Broome, a corner site can get $1,000 a square foot while locations in the middle of the block could see $600.
One growing area for fledgling brands entering the Manhattan retail market is NoLIta. Rents there range from $125 to $275 a square foot on Elizabeth Street; $125 to $225 on Prince Street, and $100 to $200 on Mott Street. Brands that opened their first retail space there before adding locations elsewhere include Tory Burch, Rebecca Taylor and Scotch & Soda. Other brands that have joined them include Steven Alan and Rag & Bone. Anthropologie is set to open in NoLIta later this year.
The blocks are smaller, and the store size representative of boutiques in square footage.
Goldberg said there’s also increased activity in rental space in Times Square. The interest is less from the luxury brands and more from international firms. As some discounters are moving out of Herald Square, he expects to see more mainstream retailers opening up larger stores. He’s also projecting that the area of Fifth Avenue between 42nd and 49th Streets is likely to see more fashion tenants down the road.
@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
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)