By Adelaide Polsinelli, Senior Director, Eastern Consolidated
New York City’s retail real estate market, the bellwether for trends, values and ingenuity, is setting records on every level-even on side streets.
While traditionally strong retail corridors such as Fifth Avenue, Madison Avenue and Broadway have seen overheated retail rents due to increased tourism and consumer spending, better than ever residential demand and retailer confidence in the stability of these markets has helped drive demand beyond traditional “high street” locations.
National brands, luxury retailers and international innovators all understand the need to be in marquee locations with prime addresses, yet the demand is far outpacing the supply which had led to side street spillover, increasing the values and thus the rents for any streets touching these white-hot spaces. What that means for retailers is that the presence of these magnet high street retailers has drawn shoppers and pedestrians to walk around the area and thus spillover to the cross blocks and side streets. The increased traffic allows for new pedestrian street patterns to lead shoppers to these secondary destinations. For example, ever watch the crowds waiting outside Hollister at 666 Fifth Avenue? Once they are done shopping or grow tired of waiting in line, these folks walk around the block and meander to nearby retailers.