April 25, 2017
Asking rents for Manhattan retail space dropped in 12 of the 16 retail corridors tracked by CBRE in the first quarter of 2017, on average, compared to the year before. Throughout all of Manhattan, retail rents dropped 2.7% on average over the same period.
“Growing online retailing, which increased to 8.3% of total national retail sales in 2016, continues to put pressure on traditional brick-and-mortar operations,” said Nicole LaRusso, director of research and analysis for CBRE Tri-State.
“Retailers are also confronting the consequences of over-expansion, often at historically high rents. These phenomena are compounded in New York City by the negative impact of the rising dollar on spending by foreign tourists, a trend that has hit the luxury market especially hard.”
Discount retailers signed three of the top five transactions this quarter, while food retailers, including quick-service restaurants, cafés, bakeries and sit-down restaurants, remained active.
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