Report: Manhattan Retail Asking Rents Rise in Some Prime Shopping Corridors

NEW YORK, NY--(Marketwire - November 5, 2008) - Retail asking rents for ground floor space along some of Manhattan's prime shopping corridors have risen notably compared to last year, while others are seeing declines, according to a report released today by The Real Estate Board of New York (REBNY).

The report found the biggest percentage increases in average asking rents for ground floor space in TriBeCa on Hudson Street from Chambers to Canal streets, where asking rents increased 60 percent to $120 per square foot. Herald Square average retail rents jumped 38 percent on West 34th Street between 5th Avenue and 7th Avenue to $643 per square foot, and on the Upper West Side on Broadway between 72nd Street and 86th Street average asking rents climbed 17 percent to $309 per square foot.

REBNY's report, the most comprehensive assessment of retail asking rents in Manhattan, found that overall Manhattan average asking rents for all available retail space are down three percent to $129 per square foot compared to the same time last year.

"The report demonstrates mixed results, with some prime shopping corridors showing strong increases in asking rents and others experiencing declines," said Steven Spinola, REBNY President. "The advisory group, made up of some of the city's leading retail brokers, notes that while the retail market has slowed in the last few months, tenants are still leasing space and deals continue to be made."

"Further, the increases in asking rents in prime areas like TriBeCa, Herald Square and the Upper West Side, demonstrates that retailers still want to be in Manhattan. Despite the turmoil in the marketplace, asking prices for prime retail space in Manhattan's most recognizable shopping areas have not been impacted."

Prime shopping corridors that saw declines in asking prices compared to last year include: Flatiron on Fifth Avenue between 14th and 23rd streets where asking rents were down seven percent to $276 per square foot, and on the East Side on Third Avenue between 60th and 72nd streets where asking rents were down six percent to $287 per square foot. Also, in Midtown on Broadway and 7th Avenue between 42nd and 47th streets asking rents for ground floor space were down three percent to $775 per square foot.

However, the report found that East Side retail space (ground floor and other) had asking rents increase 11 percent to $190 per square foot from a year ago, and Midtown South overall reported a six percent increase to $111 per square foot compared to last year.

**For a copy of the report please contact Cara Gentile at The Marino Organization 212-889-0808 x 125.