Report: Lower Manhattan shopping corridor shows 23% rise in average asking rents

New York City -- A report released Thursday by the Real Estate Board of New York showed that some of New York City’s primary shopping corridors are seeing increases in asking rents for available retail space, while others are seeing rents plateau.



According to REBNY’s Spring Retail Report, Lower Manhattan has attracted significant interest from retailers. The Broadway corridor from Battery Park to Chambers Street in the Financial District saw a 23% increase in asking rents to $184 per sq. ft., compared with fall 2010 numbers, and a 36% surge compared with spring 2010. The surge is attributed to the visible progress of office construction at the World Trade Center site and the planned opening of the 9/11 memorial later this year.



Retail areas below 14th Street saw an increase of 4% overall with asking rents per sq. ft. for all space (ground floor and other) averaging $103 per sq. ft.



“Increased tourism has also had an impact on the city’s retail market according to our advisory group as the high-end shopping corridors, such as Fifth Avenue and Madison, have limited available space,” said Steven Spinola, REBNY president.



Uptown on East 86th Street between Lexington and Second avenues, average asking rents for ground floor space increased 14% compared to fall 2010 and 2% compared with spring 2010 to $333 per sq. ft. On the Westside, Columbus Avenue between 66th and 79th Streets, asking rents jumped 11% compared with fall 2010, and 5% compared with spring 2010 to $255 per sq. ft. On Fifth Avenue between 42nd and 49th streets, asking rents increased 3% compared with fall 2010 and 21% compared with spring 2010 to $515 per sq. ft.



Other retail corridors did not fare as well, according to the report. A lack of availability in the high-end retail corridors like Madison Avenue and Fifth Avenue between 49th and 59th streets has led to rents leveling off in these areas. Asking rents in the Madison Avenue corridor decreased to $919 per sq. ft. for ground floor space, 12% off from last fall and 4% off from spring 2010. On Fifth Avenue between 49th and 59th streets, asking rents were down 5% compared with fall 2010 and 2% compared to spring 2010 to $2,250 per sq. ft.