Industry NewsMarkets & Economy

Manhattan retail rent starting to feel effects of a slow 2015

Shrinking retail marketplace fluctuates rent prices in Manhattan retail spaces
  • A slowing global marketplace has affected the rent prices in some of Manhattan's more luxurious corridors.
  • New space previously unavailable to the market has opened up new business and adjusted rent averages.

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Rent prices in New York reached record highs last year, but there is always a balance. According to the Real Estate Board of New York's latest report, rent prices are beginning to fluctuate and adjust to the slowing global retail market. This caused retail spaces to move at a slower pace, and asking prices for space slipping away from the upward momentum. John H. Banks III, president of REBNY, said that although there is a slowdown, there is still demand for retail real estate. He emphasized the effects of a slowed-down global economy, adding that the next 12 months will be "a decisive period in which we may see more asking rent price adjustments with the movement of this market cycle.” The Manhattan Retail Advisory Group sees the overall view that retailers are seeing more space open up in other pockets of New York. As this is the case, MRAG sees retailers not moving as aggressively with capital expansion and relocations as they perhaps would in a different market. Prices...