May 23, 2017
A retail space on the edge of one of the most expensive shopping districts in the world has found a tenant likely to sign a short-term lease.
Lululemon Athletica Inc. is reportedly in advanced talks to sign a one-year lease with Thor Equities for 8,000 square feet of retail space at 597 Fifth Ave., across the street from Rockefeller Center at E. 48th St., the southern edge of Midtown Manhattan’s top retail corridor, a few blocks from Tiffany’s and all the rest.
The famous former bookstore space at the base of the Scribner Building has been empty since a Sephora store left in March. Landlords in that area have been recently asking very high rents, approaching the top rents a few blocks away.
“If someone was pricing their space at $2,000 a square foot, the next person says, well, this should be worth $3,000 a square foot,” said Gregory Kraut, managing partner at developer K Property Group, to Bloomberg. “There weren’t a lot of tenants who could afford to pay that dollar amount.”
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