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0Cushman & Wakefield | New York | 2020

NEW YORKCushman & Wakefield Q4 19

Global Cities Retail Guide


NEW YORKOVERVIEW

New York City is America.

With its blend of global commerce, international diversity and culture, entertainment and tourism, this city sets the bar for all American markets and generates the pulse for the United States economy.

With a population of more than 20 million residents, the New York metropolitan area is the largest in the United States. Over the last several years, New York City has become a magnet for the millennial generation to work and live. Today, millennials account for 31.1% of New York City’s population, a fair share higher than the 27.5% this age group represents of the national total U.S. population.

The New York City economy continued to thrive during the fourthquarter of 2019, gaining 19,900 jobs. Tourism, a critical driver ofretail activity, also remained strong as a record 66.9 milliontourists visited New York City in 2019—up from 65.2 milliontravelers in 2018. Continued record tourism, combined with risingemployment and increased year-over-year (YOY) householdincome, supports increased shopping activity and may curtailstore closures. According to Moody’s Analytics, Manhattan retailsales increased by 6.3% in 2019 and are projected to grow 2.9%in 2020.


TIMES SQUARETimes Square, often referred to as the "Crossroads of the World," is appropriately nicknamed because of its position in the intersection where Broadway and Seventh Avenue intersect at West 45th Street running from West 42nd Street to West 47th Street, and is also known as the “Bow Tie”. This prime Midtown location offers unparalleled retail exposure and signage opportunities, as it is the most highly trafficked location in New York City. An astonishing 380,000 people walk through Times Square every day, 170,000 of which work in the area. And below ground, there are 12 subway lines servicing more than 65 million riders annually.

NEW YORKKEY RETAIL STREETS & AREAS

LOWER MANHATTAN Lower Manhattan, located south of Vesey Street, is often referred to as "Downtown" or "The Financial District", or “FIDI”, and has transformed from a 9-to-5 work locality into a new and vibrant residential neighborhood and tourist destination. Lower Manhattan has rapidly changed into a globally-recognized business location with robust energy. The expanded hotel and residential population, combined with continued retail leasing opportunities at the Westfield/World Trade Center development, South Street Seaport, Fulton Center, and Brookfield Place has created an exciting "buzz" in Lower Manhattan's retail leasing scene. For the better part of last decade, this Downtown market has been undergoing a renaissance with revitalization of its premier shopping hubs.

MADISON AVENUEMadison Avenue is New York City's luxury submarket, and has long been the home of haute couture domestic and international fashion retailers and exclusive jewelers. These retailers demand the best top tier location Manhattan has to offer. The luxury strip of Madison Avenue runs from East 57th Street north into the East 70’s. For this reason, as well as the prestige associated with the name "Madison Avenue", this corridor continues to be desired by local and international retailers and new luxury brands. Madison Avenue is fueled by brand recognition high-end boutiques searching for the most successful upscale location where prominence is assured.

FLATIRON/UNION SQUARE WESTThe Flatiron district, in Midtown South, spans the portion of Fifth Avenue between 14th and 23rd Streets, Broadway from East 17th Street to East 23rd Street, and Union Square West from East 14th to East 17th Streets, and is home to a variety of retailers, including apparel, home-furnishing stores, gyms, and restaurants. Flatiron is fueled by affluent area residents, proximity to the New School and Union Square Park, and by this neighborhood's high desirability within the growing tech and new media industries which seek to secure trendy office space.


NEW YORKKEY RETAIL STREETS & AREAS

SOHOSoHo, which stands for “South of Houston” was once famous as a destination for artists and galleries. Today, SoHo is one of New York City’s most coveted Midtown South shopping destinations. Its boundaries include the area south of West Houston Street to Canal Street, Broadway to West Broadway. It is the center of the Cast Iron Historic district and has the largest population of cast iron buildings found in the world. Retailers leverage SoHo’s distinctive storefronts, hip vibe, and pedestrian-friendly environment to elevate merchandise sales and establish unique, highly stylized stores. As a result, many of the world’s most recognized retail brands see this Midtown South submarket as the ideal showcase.

MEATPACKINGThe Meatpacking district was originally home to butcher shops and meatpacking plants, and over the past few decades has evolved into one of the most popular tourist destinations for shopping, nightlife, and dining. Its borders run from Gansevoort Street, north to West 16th Street, Hudson Street/Ninth Avenue to West Street. Once considered among the grittiest of Manhattan's neighborhoods, this submarket now welcomes graphic designers, fashion design houses, museums, hotels, luxury boutiques, and several of Manhattan's finest restaurants and trendy night clubs. This Midtown South neighborhood has evolved into a high-end shopping destination driven by the success of the revitalized High Line Park (which attracts five million tourists annually), the massive multi-tenanted food hall/office building/production studio, Chelsea Market complex on Ninth Avenue, and the new Whitney Museum of American Art on West 13th Street.

FIFTH AVENUEThe Fifth Avenue corridor is New York City's premier retail corridor and is home to numerous high-end fashion tenants, internationally recognized retailers, and global brands. More recently, athletic wear tenants such as Nike and Under Armour have opened and plan to open on Upper Fifth Avenue (49th-60th streets). This upscale Midtown submarket is globally recognized, highly patronized by tourists, and driven by the dense office market population. This corridor commands the highest asking rents in Manhattan and nationally. As of late, Upper Fifth Avenue leasing activity has stalled with only one transaction with the majority of activity on Lower Fifth Avenue (42nd-49th Streets) where six new retail deals were announced in 2019.

HERALD SQUARE/WEST 34TH STREETThe Herald Square/West 34th Street (Fifth Avenue-Seventh Avenue) retail corridor falls into the Herald Square/Penn Plaza submarket of Midtown Manhattan. It houses two of the most iconic landmarks in New York City— Macy’s department store at Broadway and West 34th Street opposite Herald Square Park, and the Empire State Building at 350 Fifth Avenue. West 34th Street is a shopping destination for daytime workers and tourists and is also populated by commuters traveling to Penn Station at Seventh Avenue. This stretch of retail is the home to many flagship stores of mainstream retailers, including Sephora, Footlocker, and Victoria’s Secret. Prominent additions to Herald Square’s tenant roster are Midtown’s first Target department store and eCommerce giant Amazon’s second bricks-and-mortar bookstore in Manhattan.


NEW YORKMARKET OVERVIEW

KEY AREAS / STREETS/SHOPPING CENTERS

CONSUMER PROFILE

MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT FOR UNIT OF 2,000 SQFT

RANGE OF UNIT SIZES

Times Square BowtieTourists, local business density

Sephora, Forever 21, American Eagle, Swatch, Sunglass Hut, M&M’s World, H&M, Levi’s, U.S. Polo Association, Express, Skechers, Old Navy, The Gap, T-Mobile, Loft, Arabian Oud, Swarovski, Line Friends, Steve Madden, McDonald’s, Hard Rock Café, OliveGarden, Modell’s, Applebee’s

Pele Soccer, JD Sports, Krispy Kreme, Soarin’ by Discovery, Taco Bell Cantina

$1,750 PSF 866-8,641 SF

Lower Manhattan

Tourists, local business density, local shoppers

Hermes, Tiffany & Co., Century 21, Canali, TJ Maxx, Ann Taylor, The Gap, Cipriani, Abercrombie & Fitch, Superdry, Salvatore Ferragamo, Urban Outfitters, Ermenegildo Zenga, Zara, Bonobos, Sunglass Hut, Tom Ford, Anthropologie, City MD, Apple, Whole Foods, Marshalls, Capital One, Indochino, Crunch Fitness, Club Monaco, Lego, Equinox, COS, Invicta, H&M, 10 Corso Como, Equinox

UNTUCKit, Oliver Peoples, Suitsupply, William Barthman, H&R Block, Rebag, Madewell, Innisfree, Convene, City MD, Five Iron Golf, Life Time Fitness, Jennifer Furniture, Blo Blo Dry Bar, OrangeTheory Fitness, NY Sports Club, Paper Source, Rebagg, Hugo Boss

$125-$300 PSF 250-24,487 SF

Madison Avenue(E. 57th-E.72nd Sts.)

Tourists, local shoppers

Hermes, Ralph Lauren, Chanel, Giorgio Armani, Chopard, Alexander McQueen, Jaeger LeCoultre, Baccarat, Bottega Veneta, Jimmy Choo, Tod’s, Paul & Shark, A Lange & Sohne, Santoni, Madewell, Givenchy, Breitling, Yves Salomon, Elie Saab, Giuseppe Zanotti, Moncler, Georg Jensen, Tom Ford, Vhernier, Celine, FP Journe, Wolford, Montblanc, Akris, Fendi, Canali, Montblanc, Schutz, Brunello Cucinelli, Givenchy, Loro Piana, Oliver Peoples

Deciem, Ralph & Russo, The Westside, Nili Lotan, Balenciaga, Missoni, Sergio Rossi, Mark Cross, Monique Lhuillier, Balmain, Byredo, 7 For All Mankind, Manolo Blahnik, Morgane Le Faye, Santoni, Traum Safe, La Fonde

$825-$1,100 PSF 667-4,798 SF




CONSUMER PROFILE


RANGE OF UNIT SIZES

Flatiron/Union Square West

Local shoppers, local business

H&M, Sephora, Victoria’s Secret, Eileen Fisher, Club Monaco, Tory Burch Sport, lululemon, NYX Cosmetics, Bonobos, Sweaty Betty, Paper Source, Lou & Grey, Frye Company, Alo Yoga, UNTUCKit,The White Company, Theory, Flying Tiger, Bandier, Filson, Doc Marten, Scotch & Soda, Madewell, Athleta, Gap, Zara, Equinox, Intermix, New Balance, Nike

Title Boxing, Lovesac, Pergola, Free People, Outdoor Voices, Sleep Number, Bulletin, The Well, Rumble Fitness, Camp (Buzz Feed), Union Square Play, Kindbody, Brideside, Spacious, Godiva, LoveSac, Hey Dey, Warner Brothers Entertainment

$168-$400 PSF 400-13,000 SF

Fifth Avenue: 42nd-49th Streets


H&M, Barnes & Noble, Sephora, NBA Store, Zara, Guess, & Other Stories, Oakley, Tommy Bahama, Ted Baker, Skechers, Urban Outfitters, Best Buy, Aldo, The North Face, Asics, Adidas, Walgreens, COS, Calzedonia, Vans, Intimissimi, Aritzia, Timberland, Zara, Five Below, Sunglass Hut

L’Occitane en Provence, Puma, Laderach, Club Monacco, UGG $700-$750 PSF 2,300-10,172 SF

Fifth Avenue: 49th-60th Streets


Saks Fifth Avenue, Bergdorf Goodman, Salvatore Ferragamo, Tiffany & Co., Harry Winston, Gucci, Cartier, Prada, Bulgari, Armani, Coach, Versace, Uniqlo, Valentino, Dolce & Gabbana, Microsoft, Longchamp, Dyson, Victoria’s Secret, Apple,Abercrombie & Fitch, Nike, St. John, Wempe, Mikimoto, Hublot, Louis Vuitton

Under Armour, Delvaux, Chocheng, Dior $2,463-$3,500 PSF 900-9,000 SF




CONSUMER PROFILE


RANGE OF UNIT SIZES

Meatpacking Tourists, local shoppers

Zadig & Voltaire, Intermix, Diane von Furstenburg, Apple, La Perla, Vince, Christian Louboutin, Theory, Kiehl’s, Bond No. 9, The Kooples, Zimmermann, Carlo Pazolini, Warby Parker, Restoration Hardware, Madewell, Parfums de Marly, Tesla, Maiyet, Sneakersnstuff (SNS), Hyundai/Genesis, Samsung, Trina Turk, Chrome Hearts

Hermes, Marcus, Loro Piana, Vans, Med Men, Belstaff, WIX, Brunello Cucinelli, Frame Denim, Fjallraven

$250-$500 PSF 806-22,300 SF

SoHo Tourists, local shoppers

Stella McCartney, Alexander Wang, Patagonia, Coach, Bloomingdale’s, Victoria’s Secret, Prada, Moschino, Uniqlo, Under Armour, Sunglass Hut, & Other Stories, Maud Frizon, Rebecca Taylor, Proenza Schouler, Dolce & Gabbana, Balenciaga, The Kooples, Byredo, Balmain, Morgane Le Fay, Tomorrowland, Versace, Adidas, Canada Goose, Vera Bradley, Tous, Frame Denim, Free People, Linda Farrow, RM Williams, Dolce Vita, Pinko, Eight Senses, Monica Vinader, Follain, Vivienne Hu, Djula, Dr. Marten’s, Amazon, Alo Yoga, Herno, Off White, Moncler, Saje, Faith Connexion, Brett Johnson, Sephora, Gentle Monster, Champion, Mango, lululemon, Woolrich, Brandy Melville, Madewell, Anthom, Dreams on Air, Desigual, The North Face, Hugo Boss, Farm Rio

Calzedonia, Tom Dixon, Eleventy, Anine Bing, Kotn, Schutz, Mansur Gavriel, Bruno Magli, McKenzie Childs, Aquazzura, Bang & Olufsen, The Face, One King’s Lane, Sunspel, PIQ, Mykita, Ben Sherman, Jack Vartanian, Grace Loves Lace, Redemption, Space in the Raw, Gucci, Thursday Boot Company, Argent, Buscemi, lconeri, Poggenphol, Loewe, Alexander McQueen, Rossignol, Gauran Shah, Norrona, Moose Knuckles, Eloquii, Kenzo, AuRate, L’Agence, Society Limonata, Tamara Mellon, Nanushka, Lazaro, Mackage, Taft, Luca Faloni, Rails, Pandora, A Bathing Ape (BAPE), Burrow

$114-$900 PSF 200-13,677 SF


New York City continues to be the world’s premier dining city, housing restaurants representing a variety of price points, cultures, and palates at every location.Due to healthy economic performance, New York City’s fine dining establishments continue to be busy every night of the week, catering to the well-heeled gourmand. Some of these successful restaurants include Le Bernadin, Jean Georges, Eleven Madison Park, and Per Se.

However, casual fare remains in the forefront. Some trends have halted, including the Japanese-based, stand-up-and-eat concept, Ikinari Steak. This fast casual eatery rapidly expanded in Manhattan and has slowly closed their doors despite its cult following. Additionally, the rise and fall of the cupcake business has ceased and has been replaced by ice cream and gelato type fare.

As of late, one hot quick serve restaurant (QSR) that is in the expansion mode with four new eateries announced during 2019 is Taco Bell Cantina who is growing its New York footprint by serving shareable appetizers and alcoholic beverages in it Cantina model, urban design setting.

New ethnic cuisines and international food boutiques continue to find homes in New York City whether at the fine dining or casual end. Some of the newer entrants include chef David Chang’s “Fuku”, serving casual lunch-style chicken sandwiches. Sushi-type, quick serve restaurants featuring raw fish poke originating in Hawaii, continue to expand. In Manhattan, coffee houses, bubble tea, and juice establishments including Dr Smood and Joe & The Juice, have slowed in their expansions while Japanese ramen noodles, dumplings, Mediterranean grain bowls, and almost all salad concepts are growing.

Following these trends, other food groups making the New York scene include donuts and pastry shops, chocolate cafes, nuts & candy shops, and vegan-style ice cream establishments. Chains including Krispy Kreme, Dunkin’, and Paris Baguette have leased space in Manhattan for added eateries during 2019, all welcome additions.

Crowd pleasing quick-serve Manhattan brands include expansions by: Pret A Manger, Chick-fil-A, by Chloe, Shake Shack plus salad-concepts such as Chop’t, Just Salad, sweetgreen, Cava Grill, and DIG are all flourishing as DIG announced six new expansions during 2019.

Food Halls continue to grow slowly in the Manhattan eating arena. In the past several years, this hot trend of dining hall, kiosk-type choice eating has expanded in the challenging New York City restaurant environment. Food Hall leader, Urbanspace announced two additional locations will be added to Midtown West in 2019. This trend exploded with the draw of food diversity and ethnic choices all under one roof.

Manhattan is saturated with new food establishments catering to the busy office lunch crowd and continues to handle the flow of new meal concepts. Food users continue as the primary retail space takers in 2019, up 57.6% year over year, proving to be the prominent leasing industry in Manhattan, and are testing the water in the outer boroughs as well.

The latest meal trend in New York City is the arrival of the ghost kitchen. These kitchens are generally lower-grade retail spaces where “to-go” meals are prepared. Two ghost kitchens, Kitopi, (with their first location in the Brooklyn Navy Yard), and Zuul have secured their places as food pioneers preparing take out meals behind the scenes as consumers place a website order and wait for the delivery. Partnered with restaurants where the food order originates, this new wave is an inevitable part of our expanding delivery meal future.

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NEW YORKFOOD & BEVERAGE


FOOD & BEVERAGE MARKET OVERVIEWNEW YORK

KEY AREAS CONSUMER PROFILE

FOOD & BEVERAGE OPERATORS INCLUDING

RENT FOR 3,500 SQFT UNIT

Grand Central Local business density, tourists

Pret A Manger, Cosi, Sushi Ginza Onodera, Fields Good Chicken, Dr Smood, Joe & The Juice, Poketeria, sweetgreen, Dill & Parsley, Blue Bottle Coffee, Cava Grill, Chick-fil-A, Ole & Steen, Sticky’s Finger Joint, Los Tacos No.1, Proper Food, DIG, Taco Dumbo, Just Salad, Little Collins, Black Fox Coffee, Inday

$262-$600 PSF

PlazaLocal residential population, business density

Ocean Prime, Marea, 21 Club, Quality Italian, Fogo de Chao, Dos Toros, Joe & The Juice, Maison Kayser, Le Pain Quotidien, Pret A Manger, Wagamama, Just Salad, Blue Bottle Coffee, Boucherie, Proper Food, Mighty Bowl, Rue 57, Benoit, Michael’s, DIG, Tang Pavilion, Il Corso, The Polo Bar, Taco Dumbo, Le Bernardin, Pot Belly Sandwich, Chipotle, Bread & Butter

$245-$700 PSF

Midtown WestLocal residential population and secondary retail

Meltshop, Little Beat, Ted's Montana, Carmines, Chick-fil-A, Pret A Manger, Le Pain Quotidien, Arby’s, DIG, Fresh & Co., Bond 45, Meatball Shop, King of Kobe, Talad Wat, Taco Bell Cantina, Poke Bowl, Apes & Peacocks,Urbanspace, Cedric’s at The Shed, Shake Shack, Sugarfish, Just Baked, Paris Baguette, Black Iron Burger, Honeybrains, Made in NY Pizza, Taco Mahal, Dunkin’

$130-$247PSF






Flatiron, Meatpacking

Local residential population, business density

Eataly, Shake Shack, Buddakan, Spice Market, The Standard Grill, Catch, Obika Mozzarella Bar, DIG sweetgreen, Sugar Factory, Tsurutontan, by Chloe, Sugarfish, Burger & Lobster, Tender Greens, Chick-fil-A, Ole & Steen, Teazzi Tea Shop, Bagatelle, La Cubana, Punch Bar, Godiva Café, Krispy Kreme, Nus-Et-Burger, Oiji, Ella Brasileria

$85-$400 PSF

Upper East Side Local residential population

Shake Shack, Luke's Lobster, Mighty Quinn’s BBQ, Joe & The Juice, sweetgreen, Baked by Melissa,Vivi Bubble Tea, Zavo Restaurant & Lounge, Oath Craft Pizza, Starbucks, Taco Bell, Levain Bakery, BLT Prime, Double Twister Ice Cream, Paris Baguette, Nuts Factory, Jacques Torres Chocolate, The Little Beet, BLT Prime, Anita Gelato, Lenwich

$98-$225 PSF

Upper West Side Local residential population

Meatball Shop, Carmine's, Lenny's, sweetgreen, Crave Fishbar, Panda Express, DIG, Cipriani Food Hall, Shake Shack, Viand Café, Blue Bottle Coffee, Oath Pizza, Joe & The Juice, Holy Schnitzel, Big Gay Ice Cream, Café Metro, Bareburger, Calle Ocho, Vanessa’s Dumplings, Boucherie, Irving Farm Coffee, Kee’s Chocolates, Seven Hills Grill, About Coffee, Au Jus, Junmen Ramen

$100-$166 PSF






Lower Manhattan

Local residential population, business density, tourists

Mighty Quinn's BBQ, Cipriani, Chop't, Capital Grille, Delmonico’s, Bobby Van’s Steakhouse, Morton's, Potbelly Sandwich, Eataly, The Malt House, Oaxaca Taqueria, Black Fox Coffee, Smashburger, Hudson Eats Food Court, Birch Coffee, Just Salad, Blue Bottle Coffee, Joe & The Juice, Chick fil-A, Dos Toros, Wasabi Sushi & Bento, Black Seed Bagel, Fuku, Blue Ribbon Sushi, DIG, Le District Market Place, Little Beat, Cava Grill, Taco Bell Cantina, Dunkin, & Pizza, Five Guys, Dill & Parsley, Just Baked, Taco Dumbo

$98-$400 PSF

SoHo, NoLitaLocal residential population, tourists

The Dutch, Parm, Bareburger, Lure Fishbar, Chef’s Club by Food & Wine, Think Coffee, Coco Pazzo, Cava Grill, Taco Dumbo, DIG, Sugarfish, Bluestone Lane, Zooba, Mister French, Café Gitane, Arabica Coffee, Bondi Sushi, Citizen Café, Chop’t, Starbucks, Neuhaus Chocolates, Flippers, Odd Fellows Ice Cream, Van Leeuwen Ice Cream, Gran Tivoli, Yakinku Futago, The Egg Shop, Balthazar

$100-$350 PSF

No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.

© 2020 Cushman & Wakefield. All rights reserved.

BARRIE SCARDINAHead of Retail, Americas1290 Avenue of the AmericasNew York, NY 10104, USATel: +1 212 841 7649Mob: +1 201 394 [email protected]

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