Soho Retail Trailing Meatpacking District's High Line Rent Rates
Bloomberg reports: Further proving that New York’s “High-Street Retail” is no longer a single corridor along Fifth Avenue, recent reports cited by an article on Bloomberg spoke of the Big Apple’s Meatpacking District, and the large luxury retail “cachet” it has developed over the past decade. With well-heeled designers from around the globe flocking to the trendy neighborhood that the instantly-popular High Line park and other new amenities now call home, rents for retail space have spiked to levels well above nearby retail areas. Bloomberg quotes the Meatpacking District’s average retail rent to average $400 to $500 a square foot, as compared to $103 per square foot for all retail space below 14th Street in Manhattan, or $268 per square foot for Soho.
With the Meatpacking District now a real contender for retail leases, commercial property investors are now taking a harder look at opportunities in the neighborhood too. Bloomberg cited data reported by Real Capital Analytics to state that, “In a neighborhood where properties traditionally have been owned by a few families, there have been at least 12 commercial- property transactions in the past five years, with a total value of $314.3 million.” Two transactions account for nearly half of that total alone.
The one problem with all the up and up in rent rates seems to be the loss of local, small boutiques, as national and international retailers gain an edge in being able to afford space in the district. Stores such as Apple and Sephora are quickly squeezing out exclusive yet low-volume designer boutiques as well as other retailers with only a local presence.
View the full article on Bloomberg: Soho Retail Trailing Meatpacking District's High Line Rent Rates
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Posted by: Nina Turner