Search
 

Retail: Retail Rents Rise in All Five Boroughs

The market's desirability provides a solid basis for growth, says a new report.

By Casey Freeman | Updated on March 21, 2008

Retail rents in all five boroughs of New York City are expected to rise this year, according to the 2008 National Retail Report released by Marcus & Millichap Real Estate Investment Services. The report predicts retail rents in the city will rise almost 5% to $71.53 per sf, which is a more than $10 increase per sf since 2005, according to the report. The rise is due to neighborhoods changing, redevelopment and new stores entering. NYC’s improvement is because the area is a highly desired market and has a solid foundational hold on rent prices, according to the report.

The national average forecast for 2008 was for asking rents to rise to approximately $20 per sf, an increase of 2.6%. Higher vacancies make owners increase strategies to bring in tenants, which affected growing rates.

“Retail properties in areas with significant pedestrian traffic will continue to be in high demand, as rents are projected to continue rising during the near term in the five boroughs,” says Edward Jordan, regional manager of Marcus & Millichap’s Manhattan office.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.