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Retail Rents in Manhattan Continue to Ebb
Manhattan’s most popular retail corridors experienced widespread asking rent declines in the fall of 2018, the Real Estate Board of New York reported. Out of the 17 high-profile corridors REBNY surveys biannually, 15 posted year-over-year decreases in ground floor retail average asking rents, the highest number since 2000.
Fifteen of the 17 corridors have lower average rents than in 2015. The average three-year decline for these corridors was 25%. Among the largest declines was 37% for the West Village on Bleecker Street.
“The ongoing shifts in retail asking rents and lease structures in Manhattan have been a by-product of a natural fluctuation in the market as well as a changing retail industry,” said REBNY president John H. Banks. The association has repeatedly criticized a City Council proposal to protect retail and office tenants from rent hikes, and Banks added that markets are more resilient when “allowed to correct naturally without overbearing intervention.”
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