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Fifth Ave. Retail Rents Up, But Most Corridors Down Y-O-Y
Manhattan’s highest-priced retail corridor, upper Fifth Avenue between 49th and 59th streets, enjoyed a healthy 17% year-over-year increase in ground-floor asking rents, according to the Real Estate Board of New York. However, compared to six months ago, the corridor’s rent growth was flat, and nine of Manhattan’s 17 high-profile corridors—including other Midtown corridors—saw Y-O-Y declines in rents in REBNY’s bi-annual survey of Manhattan retail.
Yet REBNY described the correction in rents as “orderly,” and pointed to retailers’ embrace of the new urban paradigm. That means fewer but more impactful locations, and technological advances sch as artificial intelligence driving a more personalized shopping experience.
Retail landlords have become more consistently flexible on lease terms, and transaction volume is up, REBNY reported. “The findings from our report and insight from our Advisory Group point to developments in the market that offer reasons for optimism,” said REBNY president John H. Banks.
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