Report: High demand, limited availability keep Manhattan real estate market strong
New York -- Average asking rents on Lower Fifth Avenue in Manhattan rose 13% since the spring of 2012 to $1,021 per square foot (psf) and are up 51% since the same period in 2011, according to The Real Estate Board of New York (REBNY’s) Fall 2012 Retail Report. The study revealed continued signs of improvement in the Manhattan retail market, with high demand and limited availability, which significantly drove up asking rents especially in the most prominent shopping corridors
In the Meatpacking District, as defined by the block on 14th Street between 9th and 10th avenues, asking rents rose 25% to $469 psf since spring 2012. The Flatiron shopping corridor along Broadway between 14th and 23rd Streets also had a significant increase in asking rents, with a 27% increase to $273 psf since last spring. Similarly in the Flatiron corridor along Fifth Avenue, asking rents also rose 16% to $350.
“With increased competition for the fewer prime spaces available in key locations, rents in those areas are at all time highs,” said Steven Spinola, REBNY president. “We believe the lack of more prominent spaces on Fifth Avenue between 49th and 59th Streets has led to a softening of the boundaries of this retail corridor. High-profile tenants are willing to consider space immediately south along Fifth Avenue, which has heavy tourist foot traffic. As the retail corridors evolve and grow our economy gets a positive boost and retailers have new options for growth.”
Three other shopping corridors showing growth in ground floor asking rents in this report period were:
- Broadway and 7th Avenue between 42nd and 47th Streets with asking rents up 31% to $1,833 psf since spring 2012.
- East 57th Street between 5th Avenue and Park Avenue with asking rents up 28% to $884 psf since the spring.
- Herald Square corridor as defined by West 34th Street between 5th and 7th Avenues saw rents increase 22% to $683 psf since the spring.