Jones Lang LaSalle


Manhattan retail rents soar to record levels
by David Jones
April 27, 2006

The asking rents for retail space in Manhattan have skyrocketed to record levels, fueled mainly by frenetic activity in fashion and luxury brands.

The asking rents for retail space in Manhattan have skyrocketed to record levels, fueled mainly by frenetic activity in fashion and major luxury brands, according to a new survey.

Average asking rents for ground floor space in 14 major Manhattan areas are up 19% to $329 per square foot from the year-ago period, according to a report released today by the Real Estate Board of New York. The corridors surveyed include hot retail locations in downtown, midtown and upper Manhattan.

"When we started surveying these prime retail corridors nearly five years ago, average asking rents on the major streets like 57th Street and Madison or Fifth avenues was considered high at $600 or $650 per square foot," said REBNY President Steven Spinola, in a statement. "Now, asking rents have reached new highs with Madison Avenue hitting an unprecedented $902 [per square foot]."

The report, issued twice a year, shows record increases in several areas of the city. Asking rents on 57th St. between Fifth and Park Avenue jumped 56% to a record $834 per square foot and rents in Times Square had the highest percentage increases for ground floor areas, jumping 86 % to $290 per square foot, for space on 42nd between 6th and 8th avenues.

The average increase for all Manhattan retail space was $4.9% to $108 per square foot.