Retail rents in Manhattan's prime corridors maintained their upward spiral in the first half of 2007, with Madison Avenue passing the $1,000 per square foot mark and Fifth Avenue topping $1,500.
"Several high-profile deals being closed will set new benchmarks in the second half" of 2007, said Joseph Harbert, Cushman & Wakefield's chief operating officer for the New York metro area.
Harbert gave C&W's assessment of both the office and retail real estate markets in Manhattan at the firm's midyear market report on Tuesday.
Rents are being pushed up by strong demand for space and shrinking availability, Harbert said.
The biggest jumps came on prime Madison Avenue blocks, where rents reached $1,019 per square foot, up $134 from the same period last year, he said.
However, Fifth Avenue remains the most expensive retail street in the world, Harbert said, citing asking rents above 49th Street at $1,500 per square foot. Harbert believes Gucci's lease-signing at Trump Tower last year solidified Fifth Avenue as the foremost destination for luxury and world-class brands.
Giorgio Armani's 40,000-square-foot lease at 717 Fifth Avenue was the most significant transaction of the second quarter, he said. Armani plans a multiconcept retail location at the Plaza District building, similar to ones operating in Europe and the Far East.
Gene Spiegelman, executive director of Cushman & Wakefield, said retailers were willing to pay higher rents along Madison and Fifth because some were attaining sales per square foot of upward of $3,000, compared with the $300 to $400 they average in malls. They are also driven to Fifth and Madison Avenue blocks because they view the venues as part of their branding initiatives, he said.
Joanne Podell, senior director of retail brokerage at Cushman & Wakefield, added she expected to see "much more in the way of foreign retailers coming in" to Manhattan.
She said another hot strip was Broadway in SoHo, between Houston and Spring Streets, where rents are above $400 per square foot, up from $275 two years ago.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye