Retail Rents Skyrocket in Choice Locations

NEW YORK CITY-The past 12 months has brought an 8.2% increase in retail rents for Manhattan resulting in an average asking rent of $92 per sf, according to the Real Estate Board of New York’s Fall Retail Report.

Overall, average ground-floor space asking rents for all spotlighted retail corridors saw increases of 35%, rising from $204 to $275. The increases were particularly notable in choice retail locations such as Madison and Fifth avenues. Average ground-floor space asking rents jumped 39.3% on Madison Avenue between 57th and 67th streets, rising from $491 to $684. Fifth Avenue, between 48th and 59 streets, saw average ground-floor space asking rents increase 22.6%, rising from $530 to $650, according to the report.

By neighborhood, the East Side registered the largest increase as average asking rents increased 28.8% from a year ago, rising to $143. Midtown registered a 10% increase, rising to $121, while the West Side and Midtown South registered 7% and 4.2% increases, respectively, REBNY adds.