What Phase 1 in NYC Means for Retail
If Phase 2 is expedited, according to one expert, then you’ll see an impactful change, but if not, it could end up hurting the economy even further.
NEW YORK CITY—It has been around 100 days since the first COVID case in NYC. As the city begins its Phase 1 of reopening, which includes curbside retail, manufacturing, and construction, there are many impacts to consider.
“No city is more important to the US economy than New York, and no city was hit harder than New York City,” explains James Famularo, president of Meridian retail leasing. “This reopening is a strong sign for moving forward, especially in a city where retail accounts for nearly 1 million jobs and a large chunk of NYC’s commercial real estate sector.”
According to Famularo, who has been closely following the impact of coronavirus on retail, jobs, and commercial real estate, Phase 1 seems to have had very little impact on retail, as most stores are still closed and restaurants can only do pick-up and delivery service. However, he says, there’s an obvious increase in people on the streets and cars on the road.
“Most people that we’ve been speaking to are out until September, which could end up hurting our economy even further,” he says. “If Phase 2 is expedited, hopefully at the end of June or early July, then you’ll see an impactful change, people will start to get back to their normal schedules and feel more comfortable interacting with one another.”
He notes that it is still too early to gauge where retail rents will be once this is over, but he anticipates a 25% to 30% decrease.
Famularo’s team has historically negotiated more than 100 retail and restaurant leases annually, using this volume and momentum to serve as the single point of contact for both landlords and tenants seeking retail leasing and advisory services.