Half full or half empty?
Storefront stats say 1 thing, ‘eye’ see another
THINGS look rosier for Manhattan’s retail market than they have for a while — if you believe the stats, that is. A new report just out from CBRE cites a bunch of upbeat metrics for the first quarter of 2023. But Realty Check’s eyes tell another story — not negating the findings, but adding nuance to the big picture.
First, the good news. According to CBRE, available storefronts tracked across 16 prime shopping corridors fell by 7.2% from the fourth quarter, from 222 to 206. Average asking rents increased for the third consecutive quarter to $638 per square foot, up 3.7% from the prior quarter and up 8% from a year ago.
There were impressive transactions at premier locations. LVMH signed a new 43,500-square-foot lease for Louis Vuitton at The Trump Organization’s 6 E. 57th St., where Tiffany was temporarily parked before it moved back to its original Fifth Avenue building.
Substantial if smaller deals included J.Crew’s 27,000-square-foot renewal at 91 Fifth Ave.; a new, 26,000-square-foot lease for Aqua Restaurant Group at 902 Broadway; and a new, 18,000-square-foot location for H&M at 591 Broadway.
But with so much good news, why do there seem to be more empty stores than there were a year ago?
It depends on where you look. Specific locations are obviously of the essence. The CBRE stats don’t include Midtown Sixth Avenue, for example. Within two blocks of The Post’s offices at 1211 Sixth, three large, highly visible corners have stood vacant for at least a year since prior tenants the NHL Store, Gap and Cafe Metro closed.
In fact, little has budged in the stubborn, Midtown-Sixth market. Another large corner at the New York Hilton at West 54th Street remains empty after years of trying, despite enormous foot traffic, including high-spending hotel guests.
But CBRE retail broker Matt Chmielecki, who didn’t prepare the report but reviewed it, said there’s more to assessing any particular local situation than merely “looking at stores that are vacant and counting them,” which he called “the least scientific way” to measure the market.
Without referring directly to Sixth Avenue, he said that the lease-up process takes much longer than it did in the past, due to multiple layers of corporate approvals, among other things.
Manhattan has much more highquality retail space than it did 25 years ago, due to new development and storefront creation at older buildings that previously had none. (The Hilton storefronts, for example, were built just a few years ago in what was previously a taxi driveway.)
Asked whether there’s enough demand to fill all the new Manhattan space, Chmielecki said, “The short answer is yes.”
He said the “longer answer” is that as high-end retail spread from Midtown and uptown to the Meatpacking District, Soho, Bleecker Street and other areas, it took time for landlords, tenants and brokers to understand which kinds of tenants were viable where.
“Today, we’re much more clearly defined than in the past on the different markets.”
Golf sim in BK
The intersection of Downtown Brooklyn and Boerum Hill might seem an unlikely golf mecca. But Tishman Speyer’s 11 Hoyt, a recently finished, 57-story luxury apartment tower, will soon welcome Golfzon Social — the first New York City location for the multifaceted indoor golf simulation venue that will also include a cafe and lounge featuring craft beer.
Golfzon Social brings to the site the team of leading “off-course” simulation creator Golfzon and golf-related hospitality provider Troon. Their new, 18,000-squarefoot venue will open this fall at the base of 11 Hoyt. Although Troon is a minority investor in Golfzon Social LLC and will manage the facility, the lease is with Golfzon. Tishman Speyer’s head of US residential development, Erik Rose, said Golfzon Social “will make for a one-of-a-kind amenity for 11 Hoyt residents and a vibrant destination for the surrounding community.” Golfzon North America CEO Tommy Lim said, “It provides a convenient way for residents to play, practice and have fun year-round.”