It's tough all over.Asking rents, according to a spring Real Estate Board of New York report, declined 10 to 30 percent year-over-year in 14 of Manhattan's 17 top retail corridors, and were off by up to 20 percent in Beverly Hills, according to brokers in that city. On certain Manhattan streets, rents had spiraled so high that operating stores became unprofitable for retailers, including Ralph Lauren, which shuttered its Fifth Avenue flagship for the Polo brand. Now, seemingly, rents have nowhere to go but down.Rents have been slipping at shopping centers in particular where the demand for space has softened since more business began moving online.The mall vacancy rate in the second quarter of 2017 for neighborhood and community centers was 10 percent, a slight increase over the first quarter's 9.9 percent, while the national mall vacancy rate increased to 8.1 percent from 7.9 percent, according to Reiss. In tertiary markets, where many C-malls and lesser properties are located, the vacancy rate increased to 13.5 percent in the second quarter from 13.2 percent at the end of 2016.Rents rose slightly, 0.4 percent in the second quarter, to $20.64 a square foot, according to Reiss. The anemic rent growth in malls and neighborhood and community shopping centers was attributed in part to retailers rationalizing their store fleets as they build omnichannel businesses.But store closings weren't the only reason for the glut of retail space in shopping centers. Relatively strong new retail construction with 2.9 million square feet in the second quarter, up from 1.7 million square feet in the first quarter, is also believed to have contributed to the increase in empty space at existing malls.The three biggest shopping center owners fared better than average. Simon Property Group in the second quarter said its occupancy rate of 95.2 percent declined 40 basis points compared with occupancy at the end of the first quarter. Average base rent rose 3.3 percent to $52.10 a square foot, year over year, reflecting strong retailer demand. Simons' malls and premium outlets recorded leasing spreads of $8.13 per square foot or 12.9 percent.Taubman Centers occupancy, excluding lease cancellations, was up 2.8 percent and average rent per square foot rose 1.6 percent. The company said the relatively small number of yields with average lease terms of less than 2.5 years had a significant impact.Westfield's half-yearly financial results showed a jump in average specialty store rent at its flagship properties of 10.6 percent to $115 a square foot. The mall giant said it has reduced its reliance on department stores from 42 percent in 2007 to 28 percent this year. Westfield said it's heartened by e-tailers such as Bonobos, Peloton, Warby Parker, Amazon Books, Misguided and Untuckit opening stores. And while Tesla has been the only car dealer on the lot, Westfield said Jaguar, Range Rover, Hyundai, Ford and Citroën are kicking mall tires.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim