News

Manhattan rents fall in fall 2021 without tourists, workers

Times Square registered its lowest rent in over a decade, with an average asking price per square foot of $998. (iStock / Illustrated by Steven Dilakian for The Real Deal)

With Manhattan devoid of office workers and international tourists, retail rents in the area are struggling to meet pre-pandemic levels.

Median asking rents in 13 of Manhattan’s retail lobbies registered a year-over-year decline, according to Fall 2021 Report by the Real Estate Board of New York. Nine corridors have experienced an increase or no change in average asking price per square foot since spring 2021.

“Despite some encouraging signs in Manhattan’s current retail sales data, progress continues to depend on key economic and public health factors in the coming months,” said REBNY President. James Whelan said in a statement.

That could be good news for retailers on the hunt for a new space. At 43%, the number of spaces with median rents below $300 per square foot is more than double the 28% recorded in Fall 2019.

Times Square registered its lowest rent in over a decade, with an average asking price per square foot of $998. That’s a 29% drop from Spring 2021 and a 39% drop from the same period last year.

On the other hand, Fifth Avenue between 49th and 59th streets has an average asking price per square foot of $2,628, a 12% decrease from Spring 2021. This number has remained unchanged year-over-year.

Herald Square was also badly affected. The average asking price per square foot came in at $390, down 20% from spring 2021 and down 11% from the same period last year.

For those corridors that have seen asking prices soar, the gains have been minimal.

In the case of 3rd Avenue between 60th and 72nd streets, the corridor had an average asking price of $214, a 15% increase from Spring 2021, but only a 1% increase from the same period last year. Bleecker Street between 7th Avenue South and Hudson Street also has a 4% tilt from Spring 2021 and a 1% drop from the same period last year.

However, there are some signs of hope. Cushman & Wakefield reported 1.1 million square feet of rentals for the first two quarters of 2021 — the first time transaction volume hit 1 million square feet since the last two quarters of 2019.

Visitors to Times Square are still below 2019 levels, but reaching 200,000 per day in July 2021. NYC & Company estimates tourism will reach 34.6 million visitors in 2021, with 2.8 million visitors visitors from other countries. That forecast is still down from the total of 66.6 million tourists and 13.5 million from other countries recorded in 2019.

However, the corridors for office workers continue to struggle with low traffic. According to a month 10 REBNY Report, just under 30% of retail space in the Grand Central and Midtown East business districts – which account for 15% of the city’s office supply – remained vacant this summer, more than double the share. 10 to 15% vacancy rates foreseen the pandemic.

https://therealdeal.com/2021/12/16/manhattan-retail-rents-fell-without-tourists-office-workers/ Manhattan rents fall in fall 2021 without tourists, workers

Dais Johnston

USTimeToday is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@ustimetoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button