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CBRE: Retail Is on Fire

NEW YORK CITY-In a departure from normal proceedings, the real estate services firm included a panel of retail experts in its quarterly briefing due to the sector's skyrocketing performance.

By Rayna Katz | Updated on October 16, 2013

NEW YORK CITY-Manhattan’s solid retail sector performance showed no signs of slowing down in the third quarter, and it’s unclear when rents for such space might fall, according to CBRE retail analysts, who appeared Wednesday at a press briefing in their Midtown East offices. The Fifth Avenue corridor between 49th and 59th streets “pierced the $3,000 per square foot line, and it jumped to $3,150 in the third quarter,” according to CBRE’s fall 2013 Manhattan retail report, released today at the firm’s third quarter 2013 Manhattan Market Research Media breakfast in its Midtown office.

And there is still room for many changes and for growth, said retail brokers Andrew Goldberg, vice chairman; EVPs David LaPierre, Richard Hodos and Susan Kurland. “With the pricing disparity of above ground space, we’ll continue to see landlords convert office space to retail,” said Goldberg. “Up and down Fifth and Madison avenues, it’s tough to find a ground-floor only store, and we’re starting to see this in Soho too. When retail tenants are paying $1,000-$3,000 a foot for the ground floor and the average office rent in Midtown South is over $62 for second floor space, there’s a pretty big delta. People are learning how to operate multi-floor stores because success stories abound.”

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