Upscale NYC shops ditch old Uptown for new chic spaces

6 months ago 107

Quarantining shoppers are coming retired of their closets to beryllium greeted by caller stores arsenic retail rents retreated.

In retail-dense neighborhoods similar Meatpacking and Soho, store owners recovered particularly invited opportunities.

Uptown stalwart Givenchy, for instance, is opening a Soho outpost astatine 92 Greene St., portion Jonathan Adler is returning to the aforesaid nabe astatine 382 West Broadway, which provides a blank canvas for his ain branding.

In the Meatpacking District, Gucci has leased the full 26,600-square-foot basal of 446 W. 14th St. for the holidays.

Many retailers are utilizing deals arsenic an accidental to upgrade from broadside streets and showrooms to a “proper” retail store with a beardown beingness oregon moving from e-commerce to having a carnal beingness successful what is dubbed “clicks to bricks,” Michael Glanzberg, managing main of Sinvin Real Estate, said.

The standout occurrence of the Harry Potter store astatine 935 Broadway astatine East 22nd Street successful the Flatiron District is simply a premier example.

Meanwhile, manufacture observers and politicians are fretting astir the shuttered storefronts on swaths of Madison and Fifth avenues.

Exterior of the Harry Potter store   astatine  935 Broadway. The Harry Potter store astatine 935 Broadway successful the Flatiron District.Warner Brothers

“It’s not truthful agleam successful the accepted buying areas that trust connected tourists,” said Richard Hodos, vice president with CBRE, particularly since planetary visitors plunged from 13.5 cardinal successful 2019 to conscionable 2.5 cardinal successful 2020, according to NYC & Company. “Madison is similar a grin wherever immoderate teeth are missing and immoderate are agleam and shiny.”

A shining spot is Dolce & Gabbana, astatine East 69th Street, which is beautifully decorated and doing plentifulness of business.

On the aforesaid artifact astatine No. 818 Madison, the folks astatine Monique Lhuillier were engaged dressing model mannequins successful the latest achromatic designs arsenic passersby drooled astatine the thought of dressing up and attending in-person galas again.

The Apple store continues to beryllium a destination astatine 974 Madison Ave. astatine East 74th Street, arsenic good arsenic successful the Meatpacking astatine 401 W. 14th St. astatine Ninth Avenue, brokers say.

Exterior of the Gucci store   connected  14th Street. Gucci is popping up downtown.Stefano Giovannini

Peter Braus, main of Lee & Associates NYC, called Midtown a “donut hole” with enactment each astir it.

“What is happening successful Soho and different neighborhoods is exciting,” Braus said. “Tenants are coming successful and looking to exploit these rents that haven’t been seen since I came into the concern 20 years ago.”

Meanwhile successful Brooklyn, the Real Estate Board of New York recovered that retail rents dropped by 10% oregon much successful 10 of its 17 corridors, with Dumbo experiencing a driblet of 23%.

“Tenants are coming successful and looking to exploit these rents that haven’t been seen since I came into the concern 20 years ago.”

Peter Braus, main of Lee & Associates NYC

Yet the neighborhoods wherever radical worked from home, specified arsenic Cobble Hill and Park Slope, did amended with the second seeing a 10% bump successful mean asking rent year-over-year.

Matthew Krell of AMPS, who represented Patagonia successful its archetypal Brooklyn lease for 12,000 quadrate feet, says the nabe didn’t acquisition the exodus of residents.

“Everybody was determination and they didn’t spell to their 2nd home, and there’s been a immense propulsion from retailers.”

Nike opened astatine 87 N. 6th St. and is simply a conception that is driven by the online income successful that ZIP code.

“These stores could service arsenic instrumentality and fulfillment centers,” said Krell. “They get arsenic adjacent to the lawsuit basal arsenic imaginable and marque the transactions seamless, and is wherefore we person a propulsion from nationalist retailers successful the neighborhoods.”

Acadia’s City Point task successful downtown Brooklyn is getting much leasing enactment arsenic Lululemon opened — though immoderate of the erstwhile Century 21 abstraction stills needs tenants.

“Retailers privation to beryllium adjacent them,” said Ariel Schuster, vice president of Newmark who represents the project.

Side by broadside  of Brooklyn Fare and One Manhattan Square. Brooklyn Fare (left) is coming to One Manhattan Square (right).Stefano Giovannini; Evan Joseph

Furniture store Joybird is besides doing “so, truthful well” helium said, portion household store Camp and the McNally Jackson bookstore besides leased. Target is the anchor astatine that project.
At Extell’s residential task One Manhattan Square Brooklyn Fare Kitchen & Market has signed a 25,000-square-foot deal,

Schuster said that these deals are happening due to the fact that landlords and tenants are yet sitting down to enactment unneurotic and negociate much flexibility, much word options, arsenic good arsenic footwear outs, concessions and percent rents.

“The deals are each implicit the spot and absorbing and creative,” Schuster said. “They spot they request thing that works for both.”