January 29, 2020
The downward trend in Manhattan retail rents was a focal point of recent reports from both CBRE and NKF. CBRE reported that while average Manhattan retail rents were up 37% over the previous decade, they declined 8.8% on a year-over-year basis during Q4 2019.
“This decline was more substantial than the prior quarter and marked the ninth consecutive quarter of rental rate decline in the city,” said Nicole LaRusso, director of research and analysis for CBRE Tri-State. “Fortunately, the city’s demographic and economic fundamentals remain positive, with quarterly retail sales and tourism numbers continuing to rise.”
Moreover, both CBRE and NKF noted that with asking rents down in the borough’s major corridors, leasing activity was up. In particular, NKF noted that several notable retailers set up shop in Manhattan for the first time, and direct-to-consumer brands also established a physical presence, in some cases moving from pop-up to permanent locations.
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