Luxury Italian Retailer Inks Flagship Deal in Soho

Luxury Italian fashion house PINKO has signed a 5,000-square-foot lease for a new US flagship location in the Soho area of New York City. Alex Carini of Carini Group Brokers negotiated the lease transaction on behalf of the tenant.

The lease transaction is valued at $360,000, equating to a $30,000 per month rental rate or 15% of sales revenue, whichever is greater. Carini says that this is a significant discount for the location, illustrating the local market conditions. He says the lease “indicat[es] continuing real estate savings opportunities for retailers planning expansions in New York City and in other major U.S. markets.” This could ultimately help to fuel the recovery of the luxury retail segment.

The property is located at 143 Spring Street and includes a 1,745-square-foot ground level sales floor and 1,565 square feet of double-height second floor space. The property features 100 feet of wrap-around street frontage with increased visibility on the corner of Spring and Wooster Streets.

Lease deals like this are becoming a staple of the pandemic retail market. Retail tenants are able to secure discounted rates and favorable terms with three-to-five year gradual increases to return to pre-COVID rates, according to Carini. Landlords are looking to lock-in large and financially stable retailers. Smaller retailers, meaning those with one to five stores are finding more challenges executing similar leases or retail expansions, according to Carini. These tenants require personal guarantees from that group of tenants due to retail tenant eviction moratoriums in New York City.

PINKO isn’t the first sign of retail life in New York City. Earlier this year, Gucci and North Face partnered to launch a pop-up retail shop in Williamsburg, Brooklyn, in a deal brokered by Newmark. The collaboration signed a 4,000-square-foot lease at 134 N 6th Street, a property owned by L3 Capital. The pop-up was considered a good sign of recovery in the luxury retail sector.

In another Soho transaction, luxury retailer Valentino signed a lease totaling 8,718 square feet at 135 Spring Street, near the PINKO location. The Valentino property included 4,424 square feet on the ground floor and 4,294 square feet on the lower level and is near other major luxury brands like Chanel and Burberry.