July 19, 2018
Average asking rents decreased in 12 of the 16 main Manhattan retail corridors over the past year, CBRE said in its Manhattan Retail MarketView for the second quarter. However, the cause-and-effect sequence isn’t necessarily what you’d expect.
“The decline in retail rent happening in Manhattan is actually encouraging to retailers that are looking for space,” said Nicole LaRusso, director of research and analysis for CBRE Tri-State. “It is creating an incentive for tenants to go out into the market and search for opportunities that they might not have found two to three years ago. And, because they need to fill their space, retail landlords are becoming increasingly more flexible when it comes to lease terms.”
The Plaza District was once again the most active neighborhood in terms of square footage leased during Q2, led by Feld Entertainment’s lease at 218 W. 57th St. (pictured) for its “Dreamworks Trolls The Experience.”
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