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Spring 2014
Rob Speyer,Chairman
Steven Spinola,President
570 Lexington Avenue / New York, NY 10022 / 212.532.3100www.rebny.com
spring 2014
1
Manhattan’s retail leasing market remained vibrantthrough the first quarter of 2014. Strong interest in
prime corridors and the repositioning of other corridorsresulted in strong market conditions. Asking rents in themost coveted corridors showed the biggest increases thisperiod. Fifth Avenue between 49th and 59th again had thehighest average asking rent for a corridor and reached anew record at $3,550 per square foot, an increase of 16percent compared to the Spring 2013 REBNY RetailReport. The Times Square retail corridor also touched anew high with an increase of 11 percent over last year to anaverage asking rent of $2,407 per square foot.
Other major corridors saw continued rent increases aswell. The average asking rent in Herald Square along
West 34th Street increased 22 percent from last year to$883 per square foot. On Broadway in SoHo betweenHouston and Broome the average asking rent increased 19percent to $890 per square foot. Prime Madison Avenuebetween 57th and 72nd streets had a surge in asking rentsas the corridor has settled after a period of store reposition-ing. The average asking rent on the corridor increased 24percent to $1,643 per square foot.
Our advisory group noted that these increases are partlyattributable to the strong consumer demand along
New York City’s major shopping corridors. Tourism, bothforeign and domestic, has continued to grow. Furthermore,current low interest rates have allowed property owners tocarry space inexpensively. With high demand from tenantsand a low carrying cost, building owners have been pursu-ing a more deliberative approach to finding tenants; onethat maximizes property value. This is especially relevantto retail spaces in the buildings along Fifth Avenue andBroadway.
In the areas away from the most glamorous corridorsthough, the group noticed other dynamics at play.Retailer demand in these more local corridors is muchmore price sensitive. They noticed that asking rents insuch corridors have been met with some price resistancefrom retailers concerned about their bottom line. In casessuch as this, owners may try to reposition their properties,improve the space, and wait for the direction of the corri-dor to become clearer before making a commitment tolease space. This more deliberative approach to leasingtends to lead to a more vibrant and desirable tenant mix.Transitions such as these may lead to some short term dis-comfort for owners and those who frequent the corridor,but these transformations of our retail corridors keeps theretail corridor and our city vibrant and interesting.
It must be stated that the rents quoted in the report areasking rents. Also, please note that the physical compo-nents of a retail space factor greatly into its rental value.Attributes such as street/avenue frontage, ceiling height,presence of below and above grade space can affect valueas well as locational factors. Consequently, in corridorswith fewer availabilities, a high quality space coming tomarket can increase the average and median asking rentsgreatly. Accordingly, we have provided information aboutthe rent range as well as asking rent information from sixmonths and 12 months ago to provide a rich statistical con-text to evaluate the current market conditions. In addition,we would like to note that the surveyed corridors in thereport represent the top tier retail corridors in the city andthat rents on adjoining side may lease for considerably lessthan the locations we are profiling. Lastly, as we havelearned in the decade or more that we have been preparingthis report, retail brokers active in the market are an invalu-able source of information and trends that cannot be fullycaptured completely by the numbers in our report. Weattempt to provide an overview of the market at a particularpoint in time that is based on the available listings of ourAdvisory Group and the REBNY Retail Committee mem-bers which include all the major retail brokers and ownersin Manhattan.
Executive SummaryExecutive Summary
spring 2014
2
Spring Spring FallFall Spring Spring % Change% Change % Change% Change
20142014 20132013 20132013 From FallFrom Fall From SpringFrom Spring
20132013 20132013
EASTSiDEEASTSiDE
Madison Ave: 57 - 72 St $1,643 $1,380 $1,325 19% 24%
Third Ave: 60 - 72 St $261 $249 $275 5% -5%
East 86 St: Lexington Ave - 2nd Ave $384 $442 $550 -13% -30%
WESTSiDEWESTSiDE
Broadway: 72 - 86 St $284 $434 $297 -34% -4%
Columbus Ave: 66 - 79 St $360 $319 $367 13% -2%
MiDToWNMiDToWN
East 57 St: 5 Ave - Park Ave $1,000 $885 $768 13% 30%
Fifth Ave: 42 - 49 St $1,029 $1,072 $1,092 -4% -6%
Fifth Ave: 49 - 59 St $3,550 $3,170 $3,052 12% 16%
Broadway & 7 Ave: 42 - 47 St $2,407 $2,175 $2,175 11% 11%
MiDToWN SoUTHMiDToWN SoUTH
Flatiron
Fifth Ave: 14 - 23 St $388 $329 $413 18% -6%
Broadway: 14 - 23 St $392 $400 $322 -2% 22%
Herald Square
West 34 St: 5 - 7 Ave $883 $738 $724 20% 22%
DoWNToWNDoWNToWN
Meatpacking
14 St: 9 - 10 Ave $339 $356 $356 -5% -5%
Financial District
Broadway: Battery Park - Chambers St $226 $257 $232 -12% -2%
SoHo
Broadway: Houston - Broome St $890 $762 $750 17% 19%
West Village
Bleeker St: 7 Ave South - Hudson St $524 $417 $540 26% -3%
UPPER MANHATTANUPPER MANHATTAN
Harlem
125th St. (River to River) $117 $110 $123 6% -5%
AVERAGE ASKING RENT: SELECTED MAJOR RETAILAVERAGE ASKING RENT: SELECTED MAJOR RETAILCORRIDORS CORRIDORS Available Ground Floor Space OnlyAvailable Ground Floor Space Only
*Statistics reflect availabilities on 4/1/14
spring 2014
Spring Spring FallFall Spring Spring % Change% Change % Change% Change
20142014 20132013 20132013 From FallFrom Fall From SpringFrom Spring
20132013 20132013
EASTSiDEEASTSiDE
Madison Ave: 57 - 72 St $1,650 $1,300 $1,286 27% 28%
Third Ave: 60 - 72 St $250 $250 $250 0% 0%
East 86 St: Lexington Ave - 2nd Ave $355 $575 $475 -38% -25%
WESTSiDEWESTSiDE
Broadway: 72 - 86 St $268 $425 $300 -37% -11%
Columbus Ave: 66 - 79 St $333 $329 $367 1% -9%
MiDToWNMiDToWN
East 57 St: 5 Ave - Park Ave $1,000 $885 $768 13% 30%
Fifth Ave: 42 - 49 St $1,000 $1,077 $1,127 -7% -11%
Fifth Ave: 49 - 59 St $3,600 $3,200 $3,000 13% 20%
Broadway & 7 Ave: 42 - 47 St $2,350 $2,000 $2,175 18% 8%
MiDToWN SoUTHMiDToWN SoUTH
Flatiron
Fifth Ave: 14 - 23 St $393 $300 $400 31% -2%
Broadway: 14 - 23 St $447 $400 $265 12% 69%
Herald Square
West 34 St: 5 - 7 Ave $1,000 $650 $673 54% 49%
DoWNToWNDoWNToWN
Meatpacking
14 St: 9 - 10 Ave $325 $325 $350 0% -7%
Financial District
Broadway: Battery Park - Chambers St $171 $188 $188 -9% -9%
SoHo
Broadway: Houston - Broome St $864 $875 $800 -7% 8%
West Village
Bleeker St: 7 Ave South - Hudson St $550 $364 $602 51% -9%
UPPER MANHATTANUPPER MANHATTAN
Harlem
125th St. (River to River) $100 $105 $118 -5% -15%
MEDIAN ASKING RENT: SELECTED MAJOR RETAILMEDIAN ASKING RENT: SELECTED MAJOR RETAILCORRIDORS CORRIDORS Available Ground Floor Space OnlyAvailable Ground Floor Space Only
3* Statistics reflect availabilities on 4/1/14
spring 2014
Spring 2014Spring 2014 Fall 2013Fall 2013 Spring 2013Spring 2013
EASTSiDEEASTSiDE
Madison Ave: 57 - 72 St $1,200 - $2,200 $700 - $2,000 $950 - $1,736
Third Ave: 60 - 72 St $158 - $400 $154 - $325 $200 - $400
East 86 St: Lexington Ave - 2nd Ave $275 - $550 $350 - $625 $400 - $650
WESTSiDEWESTSiDEBroadway: 72 - 86 St $200 - $400 $385 - $500 $225 - $400
Columbus Ave: 66 - 79 St $226 - $650 $327 - $406 $327 $406
MiDToWNMiDToWNEast 57 St: 5 Ave - Park Ave $1,000 - $1,000 $884 - $884 $650 - $885
Fifth Ave: 42 - 49 St $575 - $1,500 $575 - $1,750 $575 - $1,750
Fifth Ave: 49 - 59 St $3,150 - $3,900 $2,500 - $3,500 $2,560 - $3,500
Broadway & 7 Ave: 42 - 47 St $1,800 - $3,000 $1,800 - $2,750 $1,500 - $2,700
MiDToWN SoUTHMiDToWN SoUTH
Flatiron
Fifth Ave: 14 - 23 St $300 - $500 $250 - $500 $350 - $500
Broadway: 14 - 23 St $275 - $453 $400 - $400 $200 - $500
Herald SquareWest 34 St: 5 - 7 Ave $550 - $1,100 $550 - $1,100 $493 - $1,100
DoWNToWNDoWNToWNMeatpacking14 St: 9 - 10 Ave $300 - $450 $325 - $450 $250 - $500
Financial DistrictBroadway: Battery Park - Chambers St $128 - $500 $125 - $500 $100 - $500
SoHo
Broadway: Houston - Broome St $720 - $1,200 $600 - $1,200 $463 - $950
West VillageBleeker St: 7 Ave South - Hudson St $375 - $700 $300 - $696 $300 - $700
UPPER MANHATTANUPPER MANHATTANHarlem125th St. (River to River) $70 - $300 $80 - $160 $72 - $235
ASKING RENT RANGE: SELECTED MAJOR RETAILASKING RENT RANGE: SELECTED MAJOR RETAILCORRIDORS CORRIDORS Available Ground Floor Space OnlyAvailable Ground Floor Space Only
4
* Statistics reflect availabilities on 4/1/14
spring 2014
AVERAGE ASKING RENT: MAJOR RETAIL NEIGHBORHOODSAVERAGE ASKING RENT: MAJOR RETAIL NEIGHBORHOODSAll Available SpaceAll Available Space (Ground floor, lower Level, Upper level, mezzanine)(Ground floor, lower Level, Upper level, mezzanine)
Spring Spring FallFall Spring Spring % Change% Change % Change% Change20142014 20132013 20132013 From FallFrom Fall From SpringFrom Spring
20132013 20132013
MANHATTANMANHATTAN $139 $130 $116 7% 20%
EASTSiDEEASTSiDE $189 $178 $174 6% 9%
60th Street to 96th Street, Fifth Avenue to the East River
WESTSiDEWESTSiDE $145 $126 $117 15% 24%
60th Street to 116th Street, West of Morningside Park
MiDToWNMiDToWN $190 $160 $133 19% 43%
35th Street to 59th Street
MiDToWN SoUTHMiDToWN SoUTH $136 $128 $120 6% 13%
15th Street to 34th Street
DoWNToWNDoWNToWN $130 $123 $114 6% 14%
South of 14th Street
UPPER MANHATTANUPPER MANHATTAN97th Street and higher, Fifth Avenue to the East River; $65 $64 $64 2% 2%
116th Street and higher, West of Morningside Park
5
* Statistics reflect availabilities on 4/1/14
spring 2014
MEDIAN ASKING RENT: MAJOR RETAIL NEIGHBORHOODSMEDIAN ASKING RENT: MAJOR RETAIL NEIGHBORHOODSAll Available SpaceAll Available Space (Ground floor, lower Level, Upper level, mezzanine)(Ground floor, lower Level, Upper level, mezzanine)
Spring Spring FallFall Spring Spring % Change% Change % Change% Change20142014 20132013 20132013 From FallFrom Fall From SpringFrom Spring
20132013 20132013
MANHATTANMANHATTAN $96 $93 $84 3% 14%
EASTSiDEEASTSiDE $125 $114 $120 10% 4%
60th Street to 96th Street, Fifth Avenue to the East River
WESTSiDEWESTSiDE $118 $98 $96 20% 23%
60th Street to 116th Street, West of Morningside Park
MiDToWNMiDToWN $100 $100 $85 0% 18%
35th Street to 59th Street
MiDToWN SoUTHMiDToWN SoUTH $103 $100 $88 3% 17%
15th Street to 34th Street
DoWNToWNDoWNToWN $103 $98 $91 5% 13%
South of 14th Street
UPPER MANHATTANUPPER MANHATTAN97th Street and higher, Fifth Avenue to the East River; $59 $56 $55 5% 7%
116th Street and higher, West of Morningside Park
6
* Statistics reflect availabilities on 4/1/14
spring 2014
7
$180
$200
$186
$178
$190
$190
$178 $180
$180 $182
$176
$1748$178
$189
$140
$155$160
$180
$1488
$1600$$
$161$$1555
$170
64$164
$1686$165$ 5
$176
$$159
$ 4$143
33
$120
400S-2
400F-2
500S-2
500F-2
06
S-20
600F-2
07
S-20
700F-2
08
S-20
800F-2
800F-2
09
S-20
900F-2
10
S-20
010F-2
010
F-2
11
S-20
110F-2
210S-2
210F-2
310S-2
310F-2
410S-2
$140
$125$129
$160
$180
$200
$132 33$128
$138 $137$133
$156
$156
5$145
$1
$161
$152
5
$144
$135
$149
$149
$
$144
$130$
$150
$137 $133
$1600
$190
$100
$120
04
20
S-
04
F-20
05
20
S-
05
F-20 06
20
S-
06
F-20 07
20
S-
07
F-20
07
F-20 08
20
S-
08
F-20 09
20
S-
09
F-20 10
20
S-
10
F-20 11
20
S-
11
F-20 12
20
S-
12
F-20 13
20
S-
13
F-20 14
20
S-
$120$11111
$136$140
$160
$127$
$107$ 07
$123$122
$128
$135
$123$ 23
$147
$$116
$132
$128 $128
$12824$124 $
$141$149
$124
$117
$126
$145
$80
$100
4002S-
400F-2
5002S-
500F-2
6002S-
600F-2
7002S-
700F-2
700F-2
8002S-
800F-2
9002S-
900F-2
0102S-
010F-2
1102S-
110F-2
2102S-
210F-2
3102S-
310F-2
4102S-
Midtown
Westside
$140
$129
$129
$130
$139
$100 $97
$120
$97
$103 $102
$108$106
$106 7$107
$ 11
$118
$111
$115$ $117
$113
$118
$118$115 $112$114
$110
100
$116
$80
400S-2
400F-2
500S-2
500F-2
600S-2
600F-2
700S-2
700F-2
800S-2
800F-2
900S-2
900F-2
010S-2
010F-2
010F-2
110S-2
110F-2
210S-2
210F-2
310S-2
310F-2
410S-2
Average Retail Asking Rents PSFAverage Retail Asking Rents PSF
Eastside
Manhattan
spring 2014
8
$90
$73
$110
$130
$82$85
$90 $92
$98$95
$95 $95
$103
$110
$95
$103 $101
$100$102$99 $99$103
$102$100 $99
$114
$123
$130
$50
$59$59$70
400S-2
04
F-20
05
20
S-
05
F-20 06
20
S-
06
F-20 07
20
S-
07
F-20
07
F-20 08
20
S-
08
F-20 09
20
S-
90-20
F
10
20
S-
10
F-20
110S-2
11
F-20 12
20
S-
12
F-20 13
20
S-
13
F-20 14
20
S-
$60
$51$51 $50
$70
$80
$50 $50$50
$56$56
$76
$76
$52
$60 $60
$52
$60$60 $60
$67
$62$62
$67$67 $66$64
$64 $65
$40
$50
4002S-
4002F-
5
$48 $47
002S-
5002F-
6002S-
600-2
F
7002S-
7002F-
7002F-
8002S-
8002F-
9002S-
9002F-
0102S-
0102F-
110S-2
1102F-
2102S-
2102F-
3102S-
3102F-
4102S-
Upper Manhattan
$90
$78
$100
$110
$120
$130
$140
$82$85 $85
$89$94
$94 $96$96 $96
$111
$96$99 $99
$103
$103 $105
$95$98
$97
$105
$120
$128$136$136
$60
$75$78
$70
$80
04
20
S-
400F-2
05
$73
20
S-
500F-2
06
20
S-
600F-2
07
20
S-
700F-2
700F-2
08
20
S-
800F-2
09
20
S-
900F-2
10
20
S-
010-2
F
11
20
S-
110F-2
210S-2
210F-2
13
20
S-
310F-2
14
20
S-
Average Retail Asking Rents PSFAverage Retail Asking Rents PSF
Downtown
Midtown South
The Retail Report provides objective, comprehensive informationabout asking rents and market trends in Manhattan.
Issued twice a year—Spring and Fall—the report is a project of the REBNY Retail Committee.
The report presents retail space information by geographical areaand focuses on the asking rent of the ground floor space on themajor retail streets.
9
acknowledgementsacknowledgementsThe REBNY Retail Report Advisory Group includes:
spring 2014
REBNY would like to thank the following firms fortheir assistance in preparing the report:
Buchbinder & Warren Realty Group, LLCCBRE
Cushman & WakefieldEmpire State Realty Trust
Jones Lang LasalleThe Lansco Corporation
Lee & AssociatesMassey Knakal Realty ServicesNewmark Grubb Knight Frank
RKFSholom & Zuckerbrot Realty LLC
Vornado Realty Trust
Robin Abrams, The Lansco CorporationKaren Bellantoni, RKF
Benjamin Fox, Massey Knakal Realty ServicesAndrew Goldberg, CBRE
David Green, Cushman & WakefieldJoanne Podell, Cushman & Wakefield
Fred Posniak, Empire State Realty TrustJeffrey Roseman, Newmark Grubb Knight Frank
Craig Slosberg, Jones Lang LasalleAlan Victor, The Lansco Corporation
