Part 2 of 2
NEW YORK CITY-Nationals want in at almost any price in the boroughs, with Brooklyn leading the way, says Jason Maier. In preparation for ICSC New York,GlobeSt.com caught up with the director of the New York office of Stan Johnson, to chat more about flagship stores in the boroughs, as well as how tourism and job growthare affecting retail revival in the City.
GlobeSt.com: I know some retailers are looking to open flagship stores in the boroughs due to asking rents there. Is that something you are seeing?
Maier: Well look at Fulton Mall in Downtown Brooklyn, it has become entirely national brand driven. The entire area around Nets Arena again entirely national Retail driven with national brands bidding up the rents. Brooklyn has exploded over the last decade thanks to the proximity to Manhattan and ease of transportation. Developers have built some of the most magnificent Condo projects, rental projects. Hotel developers have doubled the number of hotel rooms. All of this spells added interest from national tenant base. Williamsburg is about to get one of the most insane Wholefoods in the country, thanks to Midtown Equities. All of the real estate surrounding the Domino Sugar factory is getting bought up by the best value-add retail players in New York. So yes I would say the nationals want in at almost any price.
GlobeSt.com: What about the other boroughs?
Maier: Queens, the Bronx are seeing their fair share of development which is quickly followed by new glass store fronts and national brands.
GlobeSt.com: Are you seeing tourism and job growth have a major affect on retail revival in the City? Are retailers looking to expand?
Maier: I wouldn't call it a revival, but more of an expansion of the major brands. SOHO and Broadway have exploded again, 5th Ave, Madison Avenue the lower East side….Look at “Brooklyn.” Yes to all I guess. Our hotel vacancy rates are at the lowest levels and tourism certainly helps drive the economy here, especially the retailers. These are not just stores, these are global billboards. Areas of Brooklyn, Queens and the Bronx have exploded and with it the logical national retailer push for the best sites. We have some of the best shopping in the world, the best real estate and the highest foot traffic counts in the world, even with rents increasing the store sale to rent ratios justify the numbers.
To read part one of this interview, about the tremendous tidal wave of interest from investors on both the stable yield driven side and the value add investment players, click here. And to see Maier's thoughts on what to expect from ICSC NY this year, see the recent Counter Culture blog post on the subject.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
