Can you say "the rent is too damn high?" Following record retail rents on Fifth Avenue and in Times Square last year, The Real Deal is reporting that rents in Soho and lower Manhattan are on the rise as well. In both neighborhoods, the initial asking rent has increased more than 50% in the last year.
"Some of the branding elements and the 'gotta be there' philosophy that you see in Times Square and on Fifth Avenue has sort of bled down there," said Gene Spiegelman, a vice chairman and retail broker at commercial services firm Cushman & Wakefield.
Intimidated by the soaring costs of rents in those neighborhoods, the New York Post says that retailers are turning unchartered areas of West Broadway. Recent deals there include spaces for the Chobani yogurt shop and real estate firm Town Residential.
"West Broadway has finally been its revival due to the fact that it is now the least expensive option in Soho for retailers," said Jared Epstein, a vice president at Aurora Capital. "Retailers took notice and quickly followed the pioneers like a herd of stampeding buffalo."
· Retail Asking Rents Surge in Soho, Lower Manhattan: Cushman [The Real Deal]
· West Broadway Continues 'Second Wind" Revitalization [NYP]
· Retail Rents on Fifth Avenue Topped $3,100 in 2013 [Racked NY]