In Manhattan, empty retail space is flourishing as the once bustling streets of office employees dwindle.
Rent reductions offered by landlords is sustaining many retailers. But, how long can this continue? Many retailers are not making ends meet even with reduced rents.
The more sinister reality is creeping in, while the economy is beginning to bounce back, office life is not. Tourism is also moribund.
The Empire State building has just 48.3% of the building’s retail space occupied. This is down from 70% in 2019.
Rent breaks for retailers can only be sustained by a healthy office market (think law firms, corporations, etc.) Some landlords have agreed to let smaller retailers operate out of trophy buildings at low rents to fill storefronts. Tishman Speyer, manager of Rockefeller Center has leased their retail space to smaller tenants on better terms to fill the space.
Some storeowners are more hopeful. Ken Giddon, owner of Rothmans in Union Square has noted that business has improved from a year ago. He feels the city has taken on a younger and hungrier vibe, and is hopeful for the future.
Contact GE Grace to see space while the good deals are abundant. Now is a better time than ever before to acquire space. Call 646 312 6800 or email Grace@GEGrace.com