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Spring 2014

Rob Speyer,
Chairman
Steven Spinola,
President
570 Lexington Avenue / New York, NY 10022 / 212.532.3100
www.rebny.com
spring 2014
1
M
anhattans retail leasing market remained vibrant
through the first quarter of 2014. Strong interest in
prime corridors and the repositioning of other corridors
resulted in strong market conditions. Asking rents in the
most coveted corridors showed the biggest increases this
period. Fifth Avenue between 49th and 59th again had the
highest average asking rent for a corridor and reached a
new record at $3,550 per square foot, an increase of 16
percent compared to the Spring 2013 REBNY Retail
Report. The Times Square retail corridor also touched a
new high with an increase of 11 percent over last year to an
average asking rent of $2,407 per square foot.
O
ther major corridors saw continued rent increases as
well. The average asking rent in Herald Square along
West 34th Street increased 22 percent from last year to
$883 per square foot. On Broadway in SoHo between
Houston and Broome the average asking rent increased 19
percent to $890 per square foot. Prime Madison Avenue
between 57th and 72nd streets had a surge in asking rents
as the corridor has settled after a period of store reposition-
ing. The average asking rent on the corridor increased 24
percent to $1,643 per square foot.
O
ur advisory group noted that these increases are partly
attributable to the strong consumer demand along
New York Citys major shopping corridors. Tourism, both
foreign and domestic, has continued to grow. Furthermore,
current low interest rates have allowed property owners to
carry space inexpensively. With high demand from tenants
and a low carrying cost, building owners have been pursu-
ing a more deliberative approach to finding tenants; one
that maximizes property value. This is especially relevant
to retail spaces in the buildings along Fifth Avenue and
Broadway.
I
n the areas away from the most glamorous corridors
though, the group noticed other dynamics at play.
Retailer demand in these more local corridors is much
more price sensitive. They noticed that asking rents in
such corridors have been met with some price resistance
from retailers concerned about their bottom line. In cases
such as this, owners may try to reposition their properties,
improve the space, and wait for the direction of the corri-
dor to become clearer before making a commitment to
lease space. This more deliberative approach to leasing
tends to lead to a more vibrant and desirable tenant mix.
Transitions such as these may lead to some short term dis-
comfort for owners and those who frequent the corridor,
but these transformations of our retail corridors keeps the
retail corridor and our city vibrant and interesting.
I
t must be stated that the rents quoted in the report are
asking rents. Also, please note that the physical compo-
nents of a retail space factor greatly into its rental value.
Attributes such as street/avenue frontage, ceiling height,
presence of below and above grade space can affect value
as well as locational factors. Consequently, in corridors
with fewer availabilities, a high quality space coming to
market can increase the average and median asking rents
greatly. Accordingly, we have provided information about
the rent range as well as asking rent information from six
months and 12 months ago to provide a rich statistical con-
text to evaluate the current market conditions. In addition,
we would like to note that the surveyed corridors in the
report represent the top tier retail corridors in the city and
that rents on adjoining side may lease for considerably less
than the locations we are profiling. Lastly, as we have
learned in the decade or more that we have been preparing
this report, retail brokers active in the market are an invalu-
able source of information and trends that cannot be fully
captured completely by the numbers in our report. We
attempt to provide an overview of the market at a particular
point in time that is based on the available listings of our
Advisory Group and the REBNY Retail Committee mem-
bers which include all the major retail brokers and owners
in Manhattan.
Executive Summary Executive Summary
spring 2014
2
Spring Spring Fall Fall Spring Spring % Change % Change % Change % Change
2014 2014 2013 2013 2013 2013 From Fall From Fall From Spring From Spring
2013 2013 2013 2013
EASTSIDE EASTSIDE
Madison Ave: 57 - 72 St $1,643 $1,380 $1,325 19% 24%
Third Ave: 60 - 72 St $261 $249 $275 5% -5%
East 86 St: Lexington Ave - 2nd Ave $384 $442 $550 -13% -30%
WESTSIDE WESTSIDE
Broadway: 72 - 86 St $284 $434 $297 -34% -4%
Columbus Ave: 66 - 79 St $360 $319 $367 13% -2%
MIDTOWN MIDTOWN
East 57 St: 5 Ave - Park Ave $1,000 $885 $768 13% 30%
Fifth Ave: 42 - 49 St $1,029 $1,072 $1,092 -4% -6%
Fifth Ave: 49 - 59 St $3,550 $3,170 $3,052 12% 16%
Broadway & 7 Ave: 42 - 47 St $2,407 $2,175 $2,175 11% 11%
MIDTOWN SOUTH MIDTOWN SOUTH
Flatiron
Fifth Ave: 14 - 23 St $388 $329 $413 18% -6%
Broadway: 14 - 23 St $392 $400 $322 -2% 22%
Herald Square
West 34 St: 5 - 7 Ave $883 $738 $724 20% 22%
DOWNTOWN DOWNTOWN
Meatpacking
14 St: 9 - 10 Ave $339 $356 $356 -5% -5%
Financial District
Broadway: Battery Park - Chambers St $226 $257 $232 -12% -2%
SoHo
Broadway: Houston - Broome St $890 $762 $750 17% 19%
West Village
Bleeker St: 7 Ave South - Hudson St $524 $417 $540 26% -3%
UPPER MANHATTAN UPPER MANHATTAN
Harlem
125th St. (River to River) $117 $110 $123 6% -5%
AVERAGE ASKING RENT: SELECTED MAJOR RETAIL AVERAGE ASKING RENT: SELECTED MAJOR RETAIL
CORRIDORS CORRIDORS Available Ground Floor Space Only Available Ground Floor Space Only
*Statistics reflect availabilities on 4/1/14
spring 2014
Spring Spring Fall Fall Spring Spring % Change % Change % Change % Change
2014 2014 2013 2013 2013 2013 From Fall From Fall From Spring From Spring
2013 2013 2013 2013
EASTSIDE EASTSIDE
Madison Ave: 57 - 72 St $1,650 $1,300 $1,286 27% 28%
Third Ave: 60 - 72 St $250 $250 $250 0% 0%
East 86 St: Lexington Ave - 2nd Ave $355 $575 $475 -38% -25%
WESTSIDE WESTSIDE
Broadway: 72 - 86 St $268 $425 $300 -37% -11%
Columbus Ave: 66 - 79 St $333 $329 $367 1% -9%
MIDTOWN MIDTOWN
East 57 St: 5 Ave - Park Ave $1,000 $885 $768 13% 30%
Fifth Ave: 42 - 49 St $1,000 $1,077 $1,127 -7% -11%
Fifth Ave: 49 - 59 St $3,600 $3,200 $3,000 13% 20%
Broadway & 7 Ave: 42 - 47 St $2,350 $2,000 $2,175 18% 8%
MIDTOWN SOUTH MIDTOWN SOUTH
Flatiron
Fifth Ave: 14 - 23 St $393 $300 $400 31% -2%
Broadway: 14 - 23 St $447 $400 $265 12% 69%
Herald Square
West 34 St: 5 - 7 Ave $1,000 $650 $673 54% 49%
DOWNTOWN DOWNTOWN
Meatpacking
14 St: 9 - 10 Ave $325 $325 $350 0% -7%
Financial District
Broadway: Battery Park - Chambers St $171 $188 $188 -9% -9%
SoHo
Broadway: Houston - Broome St $864 $875 $800 -7% 8%
West Village
Bleeker St: 7 Ave South - Hudson St $550 $364 $602 51% -9%
UPPER MANHATTAN UPPER MANHATTAN
Harlem
125th St. (River to River) $100 $105 $118 -5% -15%
MEDIAN ASKING RENT: SELECTED MAJOR RETAIL MEDIAN ASKING RENT: SELECTED MAJOR RETAIL
CORRIDORS CORRIDORS Available Ground Floor Space Only Available Ground Floor Space Only
3
* Statistics reflect availabilities on 4/1/14
spring 2014
Spring 2014 Spring 2014 Fall 2013 Fall 2013 Spring 2013 Spring 2013
EASTSIDE EASTSIDE
Madison Ave: 57 - 72 St $1,200 - $2,200 $700 - $2,000 $950 - $1,736
Third Ave: 60 - 72 St $158 - $400 $154 - $325 $200 - $400
East 86 St: Lexington Ave - 2nd Ave $275 - $550 $350 - $625 $400 - $650
WESTSIDE WESTSIDE
Broadway: 72 - 86 St $200 - $400 $385 - $500 $225 - $400
Columbus Ave: 66 - 79 St $226 - $650 $327 - $406 $327 $406
MIDTOWN MIDTOWN
East 57 St: 5 Ave - Park Ave $1,000 - $1,000 $884 - $884 $650 - $885
Fifth Ave: 42 - 49 St $575 - $1,500 $575 - $1,750 $575 - $1,750
Fifth Ave: 49 - 59 St $3,150 - $3,900 $2,500 - $3,500 $2,560 - $3,500
Broadway & 7 Ave: 42 - 47 St $1,800 - $3,000 $1,800 - $2,750 $1,500 - $2,700
MIDTOWN SOUTH MIDTOWN SOUTH
Flatiron
Fifth Ave: 14 - 23 St $300 - $500 $250 - $500 $350 - $500
Broadway: 14 - 23 St $275 - $453 $400 - $400 $200 - $500
Herald Square
West 34 St: 5 - 7 Ave $550 - $1,100 $550 - $1,100 $493 - $1,100
DOWNTOWN DOWNTOWN
Meatpacking
14 St: 9 - 10 Ave $300 - $450 $325 - $450 $250 - $500
Financial District
Broadway: Battery Park - Chambers St $128 - $500 $125 - $500 $100 - $500
SoHo
Broadway: Houston - Broome St $720 - $1,200 $600 - $1,200 $463 - $950
West Village
Bleeker St: 7 Ave South - Hudson St $375 - $700 $300 - $696 $300 - $700
UPPER MANHATTAN UPPER MANHATTAN
Harlem
125th St. (River to River) $70 - $300 $80 - $160 $72 - $235
ASKING RENT RANGE: SELECTED MAJOR RETAIL ASKING RENT RANGE: SELECTED MAJOR RETAIL
CORRIDORS CORRIDORS Available Ground Floor Space Only Available Ground Floor Space Only
4
* Statistics reflect availabilities on 4/1/14
spring 2014
AVERAGE ASKING RENT: MAJOR RETAIL NEIGHBORHOODS AVERAGE ASKING RENT: MAJOR RETAIL NEIGHBORHOODS
All Available Space All Available Space (Ground floor, lower Level, Upper level, mezzanine) (Ground floor, lower Level, Upper level, mezzanine)
Spring Spring Fall Fall Spring Spring % Change % Change % Change % Change
2014 2014 2013 2013 2013 2013 From Fall From Fall From Spring From Spring
2013 2013 2013 2013
MANHATTAN MANHATTAN $139 $130 $116 7% 20%
EASTSIDE EASTSIDE $189 $178 $174 6% 9%
60th Street to 96th Street, Fifth Avenue to the East River
WESTSIDE WESTSIDE $145 $126 $117 15% 24%
60th Street to 116th Street, West of Morningside Park
MIDTOWN MIDTOWN $190 $160 $133 19% 43%
35th Street to 59th Street
MIDTOWN SOUTH MIDTOWN SOUTH $136 $128 $120 6% 13%
15th Street to 34th Street
DOWNTOWN DOWNTOWN $130 $123 $114 6% 14%
South of 14th Street
UPPER MANHATTAN UPPER MANHATTAN
97th Street and higher, Fifth Avenue to the East River; $65 $64 $64 2% 2%
116th Street and higher, West of Morningside Park
5
* Statistics reflect availabilities on 4/1/14
spring 2014
MEDIAN ASKING RENT: MAJOR RETAIL NEIGHBORHOODS MEDIAN ASKING RENT: MAJOR RETAIL NEIGHBORHOODS
All Available Space All Available Space (Ground floor, lower Level, Upper level, mezzanine) (Ground floor, lower Level, Upper level, mezzanine)
Spring Spring Fall Fall Spring Spring % Change % Change % Change % Change
2014 2014 2013 2013 2013 2013 From Fall From Fall From Spring From Spring
2013 2013 2013 2013
MANHATTAN MANHATTAN $96 $93 $84 3% 14%
EASTSIDE EASTSIDE $125 $114 $120 10% 4%
60th Street to 96th Street, Fifth Avenue to the East River
WESTSIDE WESTSIDE $118 $98 $96 20% 23%
60th Street to 116th Street, West of Morningside Park
MIDTOWN MIDTOWN $100 $100 $85 0% 18%
35th Street to 59th Street
MIDTOWN SOUTH MIDTOWN SOUTH $103 $100 $88 3% 17%
15th Street to 34th Street
DOWNTOWN DOWNTOWN $103 $98 $91 5% 13%
South of 14th Street
UPPER MANHATTAN UPPER MANHATTAN
97th Street and higher, Fifth Avenue to the East River; $59 $56 $55 5% 7%
116th Street and higher, West of Morningside Park
6
* Statistics reflect availabilities on 4/1/14
spring 2014
7





















$180
$200





















$186
$178





















$190





















$190
$178
$180





















$180
$182
$176





















$174
8 $178
$189










































$140
$155 $160
$180





















$1488
$160 0
$$





















$161 $
$1555
$170
64 $164





















$168 6
$165 $ 5





















$176
$$159
$ 4 $143





















33










































$120
4
0
0
S
-
2





















4
0
0
F
-
2
5
0
0
S
-
2
5
0
0
F
-
2
0
6
S
-
2
0





















6
0
0
F
-
2
0
7
S
-
2
0
7
0
0
F
-
2
0
8
S
-
2
0
8
0
0
F
-
2





















8
0
0
F
-
2
0
9
S
-
2
0
9
0
0
F
-
2
1
0
S
-
2
0
0
1
0
F
-
2





















0
1
0
F
-
2
1
1
S
-
2
0
1
1
0
F
-
2
2
1
0
S
-
2
2
1
0
F
-
2





















3
1
0
S
-
2
3
1
0
F
-
2
4
1
0
S
-
2







































































































































$140
$125
$129
$160
$180
$200



















$132
33
$128
$138
$137
$133
$156



















$156
5 $145
$1
$161
$152
5
$144
$135
$149



















$149
$
$144
$130
$
$150
$137 $133



















$1600
$190



















$100
$120
0
4
2
0
S
-
0
4
F
-
2
0



















0
5
2
0
S
-
0
5
F
-
2
0
0
6
2
0
S
-
0
6
F
-
2
0
0
7
2
0
S
-
0
7
F
-
2
0



















0
7
F
-
2
0
0
8
2
0
S
-
0
8
F
-
2
0
0
9
2
0
S
-
0
9
F
-
2
0
1
0
2
0
S
-



















1
0
F
-
2
0
1
1
2
0
S
-
1
1
F
-
2
0
1
2
2
0
S
-
1
2
F
-
2
0
1
3
2
0
S
-



















1
3
F
-
2
0
1
4
2
0
S
-
























































































































$120
$111 11
$136
$140
$160




















$127 $
$107 $ 07
$123
$122
$128
$135




















$123 $ 23
$147
$$116
$132
$128 $128




















$128
24 $124
$
$141
$149
$124
$117




















$126
$145




















$80
$100
4
0
0
2
S
-
4
0
0
F
-
2




















5
0
0
2
S
-
5
0
0
F
-
2
6
0
0
2
S
-
6
0
0
F
-
2
7
0
0
2
S
-
7
0
0
F
-
2




















7
0
0
F
-
2
8
0
0
2
S
-
8
0
0
F
-
2
9
0
0
2
S
-
9
0
0
F
-
2
0
1
0
2
S
-




















0
1
0
F
-
2
1
1
0
2
S
-
1
1
0
F
-
2
2
1
0
2
S
-
2
1
0
F
-
2
3
1
0
2
S
-




















3
1
0
F
-
2
4
1
0
2
S
-
Midtown
Westside

















$140




































$129


















$129




































$130
$139




































$100
$97
$120


















$97
$103
$102
$108
$106


















$106
7 $107
$ 11
$118
$111


















$115 $
$117
$113
$118


















$118
$115 $112$114
$110


















100
$116




































$80
4
0
0
S
-
2


















4
0
0
F
-
2
5
0
0
S
-
2
5
0
0
F
-
2
6
0
0
S
-
2


















6
0
0
F
-
2
7
0
0
S
-
2
7
0
0
F
-
2
8
0
0
S
-
2


















8
0
0
F
-
2
9
0
0
S
-
2
9
0
0
F
-
2
0
1
0
S
-
2
0
1
0
F
-
2


















0
1
0
F
-
2
1
1
0
S
-
2
1
1
0
F
-
2
2
1
0
S
-
2
2
1
0
F
-
2


















3
1
0
S
-
2
3
1
0
F
-
2
4
1
0
S
-
2


















Average Retail Asking Rents PSF Average Retail Asking Rents PSF
Eastside
Manhattan
spring 2014
8
























































































































$90
$73
$110
$130




















$82
$85
$90
$92
$98
$95




















$95 $95
$103
$110
$95
$103
$101




















$100 $102
$99 $99
$103
$102 $100
$99
$114




















$123
$130




















$50
$59 $59
$70
4
0
0
S
-
2
0
4
F
-
2
0




















0
5
2
0
S
-
0
5
F
-
2
0
0
6
2
0
S
-
0
6
F
-
2
0
0
7
2
0
S
-
0
7
F
-
2
0




















0
7
F
-
2
0
0
8
2
0
S
-
0
8
F
-
2
0
0
9
2
0
S
-
9
0
-
2
0
F
1
0
2
0
S
-




















1
0
F
-
2
0
1
1
0
S
-
2
1
1
F
-
2
0
1
2
2
0
S
-
1
2
F
-
2
0
1
3
2
0
S
-




















1
3
F
-
2
0
1
4
2
0
S
-






































































































$60
$51 $51
$50
$70
$80

















$50
$50 $50
$56 $56
$76

















$76
$52
$60 $60
$52
$60 $60 $60

















$67
$62 $62
$67 $67
$66
$64

















$64
$65

















$40
$50
4
0
0
2
S
-
4
0
0
2
F
-

















5
$48
$47
0
0
2
S
-
5
0
0
2
F
-
6
0
0
2
S
-
6
0
0
-
2
F
7
0
0
2
S
-
7
0
0
2
F
-

















7
0
0
2
F
-
8
0
0
2
S
-
8
0
0
2
F
-
9
0
0
2
S
-
9
0
0
2
F
-
0
1
0
2
S
-

















0
1
0
2
F
-
1
1
0
S
-
2
1
1
0
2
F
-
2
1
0
2
S
-
2
1
0
2
F
-
3
1
0
2
S
-

















3
1
0
2
F
-
4
1
0
2
S
-
Upper Manhattan


















































































































$90
$78
$100
$110
$120
$130
$140



















$82
$85 $85
$89
$94



















$94
$96 $96 $96
$111
$96
$99 $99
$103



















$103
$105
$95
$98
$97
$105
$120



















$128
$136 $136



















$60
$75
$78
$70
$80
0
4
2
0
S
-
4
0
0
F
-
2



















0
5
$73
2
0
S
-
5
0
0
F
-
2
0
6
2
0
S
-
6
0
0
F
-
2
0
7
2
0
S
-
7
0
0
F
-
2


















7
0
0
F
-
2
0
8
2
0
S
-
8
0
0
F
-
2
0
9
2
0
S
-
9
0
0
F
-
2
1
0
2
0
S
-



















0
1
0
-
2
F
1
1
2
0
S
-
1
1
0
F
-
2
2
1
0
S
-
2
2
1
0
F
-
2
1
3
2
0
S
-



















3
1
0
F
-
2
1
4
2
0
S
-
Average Retail Asking Rents PSF Average Retail Asking Rents PSF
Downtown
Midtown South
T
he Retail Report provides objective, comprehensive information
about asking rents and market trends in Manhattan.
Issued twice a yearSpring and Fallthe report is a
project of the REBNY Retail Committee.
The report presents retail space information by geographical area
and focuses on the asking rent of the ground floor space on the
major retail streets.
9
acknowledgements acknowledgements
The REBNY Retail Report Advisory Group includes:
spring 2014
REBNYwould like to thank the following firms for
their assistance in preparing the report:
Buchbinder & Warren Realty Group, LLC
CBRE
Cushman & Wakefield
Empire State Realty Trust
Jones Lang Lasalle
The Lansco Corporation
Lee & Associates
Massey Knakal Realty Services
Newmark Grubb Knight Frank
RKF
Sholom & Zuckerbrot Realty LLC
Vornado Realty Trust
Robin Abrams, The Lansco Corporation
Karen Bellantoni, RKF
Benjamin Fox, Massey Knakal Realty Services
Andrew Goldberg, CBRE
David Green, Cushman & Wakefield
Joanne Podell, Cushman & Wakefield
Fred Posniak, Empire State Realty Trust
Jeffrey Roseman, Newmark Grubb Knight Frank
Craig Slosberg, Jones Lang Lasalle
Alan Victor, The Lansco Corporation

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