SOURCE: Real Estate Board of New York (REBNY)

Real Estate Board of New York (REBNY)

May 18, 2012 10:29 ET

NYC Retail Report: Hot Shopping Corridors on Madison and Upper 5th Avenue Fetch High Rents

Big Rent Hikes on Lower 5th Avenue Between 42nd and 49th Streets as Lack of Space on Upper 5th Causes Trickle Down Effect

5th Avenue, Madison Avenue, East 86th Street, Herald Square and SoHo Round Out Top Five Retail Corridors

NEW YORK, NY--(Marketwire - May 18, 2012) - The market for Manhattan retail space has tightened in the most prominent shopping corridors with asking rents on Madison Avenue and Fifth Avenue seeing significant increases, according to The Real Estate Board of New York's (REBNY's) Spring 2012 Retail Report. Demand for prime store space continues to raise the asking rents and prestige in these retail corridors.

The report found that average asking rents on Upper Fifth Avenue between 49th and 59th streets have shot up 22 percent to $2,750 per square foot for ground floor space compared to the Spring of last year. Average asking rents for ground floor space on Madison Avenue between 57th and 72nd streets have increased a sizable 31 percent to $1,203 since the Spring of 2011. On Fifth Avenue between 42nd and 49th streets, asking rents were up a whopping 75 percent to $900 per square foot as lack of available space on Upper Fifth Avenue caused a trickle-down effect.

"Our report shows that asking rents in the exclusive shopping corridors in Manhattan are increasing significantly as a result of competition for prime space in these areas," said Steven Spinola, REBNY President. "One of the most significant developments in this period according to our Retail Advisory Group has been the relentless ground floor asking rent increases for retail space on Lower Fifth Avenue between 42nd and 49th Streets. The advisory group attributed this surge in asking rents to the lack of space on Upper Fifth Avenue, which caused a spillover effect for the available space on Lower Fifth Avenue, and also the result of the high degree of pedestrian traffic on the avenue."

The top five increasing prime shopping corridors this report period were:

1) Fifth Avenue between 42nd and 49th streets with asking rents surging 75 percent compared to spring of last year.

2) Madison Avenue between 57th and 72nd streets with asking rents up 31 percent to $1,203 since spring of last year.

3) A tie between East 86th Street between Lexington and Second avenues where, with few listings, asking rents were driven up 23 percent to $410 per square foot since last year, and Herald Square on West 34th Street between Fifth and Seventh avenues, with asking rents also increasing 23 percent to $558 per square foot.

4) Upper Fifth Avenue between 49th and 59th streets saw asking rents up 22 percent to $2,750, again attributed to the lack of prime available space in that corridor.

5) In SoHo on Broadway between Houston and Broome streets -- where only a few prime spaces are still available -- asking rents were up 11 percent to $551 per square foot.

Overall, asking rents for all space in Manhattan are up two percent since the fall of 2011 and down one percent compared to a year ago.

REBNY's Retail report compiles data about asking rents for available space provided by a broad cross-section of the city's leading retail brokers.

Tweet this: Report cites big increases in asking rents for city's primary shopping corridors on 5th and Madison Aves @REBNY report: http://rebny.com/.

For the full report visit www.rebny.com.

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