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New York & Tri-State  + Midtown New York  + Retail  | 

Retailers Step Up Use of Short-Term Leases

Although long-term leases remain the norm for Manhattan retail space, deals for periods of three years or less have increased sharply, according to CBRE. The firm counted 53 short-term retail deals in 2017, slightly more than quadruple the 13 counted in 2016.

As of second quarter 2018, there were at least 28 short-term deals, keeping pace with 2017’s numbers, according to CBRE. Apparel retailers were most likely to seek such leases.

The Plaza District and Upper Madison Avenue represented nine of the 94 short-term deals seen in the past two-and-a-half years. However, the hotbed for such activity is SoHo, hard hit by the retail sector’s upheaval, CBRE reported.

“The obvious positive on the tenant side is that they can test the market,” CBRE’s Michael Slattery told the Wall Street Journal. For landlords, the benefit is that tenants like the location, they will extend their leases, he said.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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