RCA in the commercial property press:

Record-Setting Price Lands Spanish Retailer a Fifth Avenue Flagship

Bloomberg reports: It was recently announced that Inditex SA, the Spain-based clothing retailer that operates the popular Zara chain, will purchase an open storefront on Manhattan’s Fifth Avenue for $324 million. Located between 52nd and 53rd Streets, 666 Fifth Avenue most recently housed the National Basketball Association shop.

More significantly, the transaction set a new record for the price paid for retail space in the US. With 39,00-square-feet, Inditex paid $8,300 per-square-foot according to data collected by Real Capital Analytics (RCA). This was higher than the last record unit-price, which was set by the $8,000 per-square-foot sale of 713 Madison Avenue, also in Manhattan during 2008.

Of the most recent record-setting sale, RCA Managing Director Dan Fasulo explained that, “Demand from global retailers is pushing values for irreplaceable locations to new heights in city centers all around the world.” Another example of this neighbors the new Zara space in the same building: Last year, Japan-based Uniqlo leased space in 666 Fifth Avenue for $300 million – the most expensive lease ever for a New York retail store.

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Posted by: Nina Turner

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