Fifth Avenue’s pricey retail rents have prompted luxury retailers to flee the to上海贵族宝贝论坛 ny stretch
Henri Bendel closed its 712 Fifth Avenue flagship last month.
Fifth Avenue is in a liquidation mode of sorts — at least when it comes to mega retailers.
In the past six months alone, Versace, Lord Taylor, Henri Bendel and the Gap have all closed shop on the luxe stretch or announced plans to relocate.
Meanwhile, the availability rate — a measure of space that’s available now or will be in the next 12 months — is climbing to historically high levels, and rents are falling.
Most analysts agree that Fifth Avenue is getting hit particularly hard by the retail slowdown thanks to its astronomically high rents. In fact, until 2018’s second quarter, retail rents on the stretch were the highest in the world. A recent report by Cushman Wakefield, however, found that Hong Kong’s swanky Causeway Bay has now grabbed that title.
But losing that label may be a good thing.
“Rents in New York City got ahead of themselves,” said Craig Slosberg, senior managing director at Newmark Knight Frank Retail.
The Fifth Avenue retail departures come even as tourism in the city is hitting new records and as at least one forecast (from Moody’s) found that Manhattan’s retail sales would actually grow by 5.5 percent in 2018.
Still, Slosberg said “new owners” — aka those who paid high prices to buy properties on the strip at the market’s peak and are now struggling to lock in retailers at the rents they were banking on — are unable to meet lenders’ pro formas. It doesn’t help matters that there are barricades around Trump Tower — a reality that is translating into a “falloff” in foot traffic for retailers “within a block and half” of the building, Slosberg said. Here’s a look at the latest happenings on Fifth Avenue.
25K sq. ft.
The size of the space that Versace is vacat爱上海同城对对碰 ing at its 647 Fifth Avenue flagship. The Italian fashion brand, which is being acquired by designer Michael Kors, is now looking to sublease the space for five years and move “farther uptown.”
The rough availability rate of Fifth Avenue between 49th and 60th streets. That means that about one in four properties is seeking new tenants along the stretch. Only retail corridors along Madison Avenue and in Herald Square had higher avai上海龙凤论坛 lability rates, at roughly 28 percent and 32 percent, respectively.
The ranking Upper Fifth Avenue now has on the world stage when it comes to retail rents. The strip lost the No. 1 spot, which it’s held since 2014, to Causeway Bay. London’s New Bond Street and Paris’ Avenue des Champs-Élysées placed third and fourth, respectively, for 2018.
The drop in rents this past fall on Fifth between 49th and 59th streets, according to REBNY. Cushman’s fourth-quarter stats pegged average rents at $2,668 a square foot from 49th to 60th — down 10.5 percent year-over-year. And asking rents between 42nd and 49th fell below $1,000 for the first time in about six years.
The number of floo[……]