While the report indicated vibrant tenant activity, it also showed that landlords have had an increased willingness to negotiate lease terms to help close the deal while holding average asking rents nearly constant. For example, many landlords have been willing to offer generous tenant work packages or less frequent base year rent increases for credit-worthy tenants who are prepared to sign a lease.

REBNY advisory group member Robin Abrams, VP at LANSCO, suggests favorable lease terms offered by landlords should be encouraging to tenants. "We have found that a lot of potential tenants have been hesitant to pull the trigger over the past few months due to uncertainty in the economy, the war in Iraq and tax increases in New York, among other factors. But, after some coaxing on the part of landlords, tenants can find a lot of opportunity out there right now."

"The report shows a snapshot of a market that seems to offer opportunity for retailers looking to establish or expand their presence in New York City," says Steven Spinola, president of REBNY. "There is premium space available on some of the most sought after retail venues in the world. Retailers should take note that while space is available, asking rents are relatively stable and, in some cases, edging slightly higher."

The REBNY Retail Report is issued twice a year in the Spring and Fall by the REBNY Stores Committee. Findings are reviewed by an advisory group that distills and analyzes the data. The report provides comprehensive information about available retail space and asking rents in Manhattan. The report presents all available data on retail space by geographic area and focuses on the ground floor space on the major retail streets. It provides an objective and reliable source for discerning market trends.

Space information has been provided on a confidential basis by REBNY member firms including: Abrams Realty Corp., CBRE Retail Services NY Tri-State Region, Cushman & Wakefield Inc., David S. Kriss Realty Company Inc., Insignia/ESG Inc., Madison HGCD LLC, Murray Hill Properties, Newmark New Spectrum Retail LLC, Northwest-Atlantic Partners Inc., Robert K. Futterman & Associates LLC, Rockrose Development Corp., Rose Associates Inc., Staubach Retail Services, The Lansco Corp., Walker, Malloy & Co. Inc., Walter & Samuels Inc. and Winick Realty Group.