Rents Fall in Top Retail Corridors

Retail rents fell in 13 of Manhattan’s top 17 shopping corridors over the last year, according to the Real Estate Board of New York’s (REBNY) Fall 2017 Manhattan Retail Report.

“Our advisory group sees this period of declining average asking rents as an opportunity for owners and retailers to find a new equilibrium rent level that promotes long-term tenancy,” said John Banks, president of REBNY.

The falling rents are a “correction” for retail rents that rose too high in recent years, according to REBNY. Falling rents also offer a chance for quality retailers to explore markets that were previously too expensive. Deals are still getting done through shorter-term leases and more flexible terms.

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