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The showpiece Prada store at Broadway and Prince won't be going anywhere. Over the summer, word of increasing rent at 575 Broadway—which houses Prada as well as Who A.U. and Lure Fishbar—sounded threatening to the artful designer store, whose lease was up for renewal. According to Crain's, the Italian brand agreed in February to pay more than $1,000 per square foot, making it the first store south of Midtown to pay four digit rent. Soho follows Times Square, which hit the $1k mark in 2008, and Fifth Avenue, who touched the tier a few years prior.
Apparently, Soho is no longer looked at by retailers as an "arty" place to have a store, but a place that real luxury customers flock to— particularly rich out-of-towners. Big brands realize that having a presence uptown or downtown is no longer an option: they need both, and they're willing to pay up. Recent luxury tenants to the 'hood include Tiffany & Co., Stella McCartney, and Versace. Also on their way in: Balenciaga and Saint Laurent.
Rents in Soho are jumping higher—and faster—than anywhere else in the city, with a 35% increase in the first quarter alone, to an average of $423 per square foot. Broadway has increased by 50% over the past year, to an average of $756 per square foot, but Prince Street between Wooster and Broadway wins the title of Soho's priciest stretch, commanding $850 per square foot after inflating by 65%. Presently, stores on this row include J. Crew, Intermix, Michael Kors and Club Monaco. Meanwhile, a glass box of a building is in the works for the corner of Broadway and Spring with rumors of rents as high as $1,600 per square foot. Interested tenants reportedly include Nike.
· SoHo joins the top tier as retail rents cross $1K mark [Crain's]
· Could Rising Rents Push Prada Out of Soho? [Racked NY]