Retail brokers say the holiday break did not stop deal-making, but instead gave clients on both sides of the transactions breathing room to make decisions.
Within the first days of the year, there was a “feeding frenzy,” said Faith Hope Consolo, chairman of retail at Douglas Elliman. “A lot of retailers that sat on the sidelines believe it will be more expensive to rent in New York this year and they are jumping in with two feet and circling back to locations they saw last year.”
“Everything that didn’t finish is continuing with the same fast pace,” agreed Joanne Podell, vice chairman at Cushman & Wakefield.
At the European retail conference, Ariel Schuster, executive vice president of RKF, said he met many European tenants still trying to figure out how to enter the US.
“It will take two to three years before they open the stores,” Schuster explained. That’s because it could take at least a year for the retailer to understand the various local markets to get a feel for rents and occupancy costs, target locations, determine their potential volume, negotiate a lease and build out a store.
Some retailers that want to keep their prized location but want a store refresh are turning to buildings like 3 W. 57th St., right off Fifth Ave., that have become year-or-longer luxury pop-ups. Here, Salvatore Ferragamo has had a pop-up store, as did Chanel and Bulgari. Now, the Kering brand Saint Laurent will move from 3 E. 57th St. to the same address on the West side while its own store gets a makeover.
One new tenant finally joining the city roster is Lowe’s Home Improvement. Last year, Schuster and RKF colleagues represented the SL Green Realty Corp. ownership side with a 36,166-square-foot lease for Lowe’s at 635-641 Sixth Ave. The Dartmouth Corp. represented the North Carolina-based company as it made its first moves into the city with both that deal and another at 2008 Broadway for 33,400 square feet.
In SoHo, the Old Navy at 503-11 Broadway was bought out of its lease by the Spanish-based Inditex, which also paid $280 million for a newly formed, 45,000-square-foot, three-level condominium where its Zara brand will open by the end of the year.
SoHo is also seeing a flurry of activity as some of the retailers that used to be on Greene Street are being displaced to Broome St., observed Susan Penzner, president, Susan Penzner Real Estate
In Times Square, Gedinsky and Hochhauser of Winick are offering a 55,000-square-foot triplex at 1441 Broadway, now known as 10 Times Square. The building has three valuable facades and new LED signage as it wraps from Seventh Ave. around W. 41st St. and Broadway.
Rents are a relative area bargain at $700 per foot on the ground, but each tenant must also rent an LED sign that, in an unusual provision, can be subleased to others.
Many brands like H&M also now have stores in both Times Square and along Fifth Avenue. Skechers has long had a store at 3 Times Square and just signed a lease with Jeff Sutton for new space at 509 Fifth Ave.
Muji’s Times Square store is on W. 40th St. in The New York Times building at 620 Eighth Ave. and Schuster represented the owners of 475 Fifth at E. 41st St. in a new 15,500-square-foot flagship for Muji, which was represented by Chris Okada.
Okada, president of Okada & Co., said the city is breaking price-per-foot records. “The neighborhoods that weren’t getting as much attention in the past now have rents going up,” Okada said.
The Durst Organization will have 50,000 square feet of retail at the base of its huge, pyramid-shaped luxury rental building at the West Side Highway and W. 57th St. A 25,000-foot-unit on the most western edge of the project is already garnering interest from auto showrooms, large fitness chains and grocers.
In the Meatpacking District, Restoration Hardware leased a 70,000-foot store at the new renovation of 9-19 Ninth Ave.. now underway by Aurora Capital, its partners and William Gottlieb Real Estate.
Down the block — now that Samsung leased all of 837 Washington St. — its upcoming neighbor at 860 Washington St. is getting the office and retail action. At 90-100 Gansevoort St., TF Cornerstone has about 16,000 feet of retail available across from the new Whitney Museum.
“Users from apparel, art galleries and food have all expressed interest in the space,” said Stephen Gonzalez, director of retail for TF Cornerstone. “It used to be all about 14th Street and now it is sliding down Washington and we are hoping to take advantage of that.” Asking rents here are $200 per foot.
