May 25, 2017
Retail rents are sagging in Manhattan, and the consensus among experts is that retail rents have risen too high in many parts of the city (see top story).
But rents remained relatively stable in NYC’s most expensive retail corridor, on Fifth Avenue between 49th St. and 59th Street. Asking rents there averaged $3,324-per-square-foot in spring 2017, just 2% less than the year before, according to the Manhattan Retail Report, issued bi-annually by the Real Estate Board of New York (REBNY).
“Activity, driven by continued retail demand, amenable landlords, and New York City’s strong market fundamentals, is countering the effect of difficult national retail conditions, some of which is the impact of e-commerce retail on brick and mortar stores,” said John Banks, president of REBNY.
As the market’s natural correction continues, average asking rents per square foot for ground floor retail space declined year-over-year in 14 of the 17 high profile corridors.
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