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.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews