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0Cushman & Wakefield | New York | 2019

NEW YORKCushman & Wakefield Q3 19

Global Cities Retail Guide


NEW YORKOVERVIEW

New York City is America.

With its blend of global commerce, international diversity and culture, entertainment and tourism, this city sets the bar for all American markets and generates the pulse for the United States economy.

With a population of more than 20 million residents, the New York metropolitan area is the largest in the United States. Over the last several years, New York City has become a magnet for the millennial generation to work and live. Today, millennials account for 31.1% of New York City’s population, a fair share higher than the 27.5% this age group represents of the national total U.S. population.

The New York City economy continued to thrive during the thirdquarter of 2019, gaining 8,500 jobs in July and August. Tourism,a critical driver of retail activity, also remained strong as a record65.2 million tourists visited New York City in 2018—up 3.8% from61.8 million travelers the prior year and on pace to draw a record67 million visitors by the end of this year. Continued recordtourism, combined with rising employment and increased year-over-year (YOY) household income, supports increasedshopping activity and may curtail store closures. According toMoody’s Analytics, Manhattan retail sales increased by 5.4% in2018 and are projected to grow 4.9% in 2019.


TIMES SQUARETimes Square, often referred to as the "Crossroads of the World," is appropriately nicknamed because of its position in the intersection where Broadway and Seventh Avenue intersect at West 45th Street running from West 42nd Street to West 47th Street, and is also known as the “Bow Tie”. This location offers unparalleled retail exposure and signage opportunities, as it is the most highly trafficked location in New York City. An astonishing 350,000 people walk through Times Square every day. And below ground, there are 12 subway lines servicing more than 64 million riders annually.

NEW YORKKEY RETAIL STREETS & AREAS

LOWER MANHATTAN Lower Manhattan, located south of Vesey Street, is often referred to as "Downtown" or "The Financial District", or “FIDI”, and has transformed from a 9-to-5 work locality into a new and vibrant residential neighborhood and tourist destination. Lower Manhattan has rapidly changed into a globally-recognized business location with robust energy. The expanded hotel and residential population, combined with continued retail leasing opportunities at the Westfield/World Trade Center development and Brookfield Place has created an exciting "buzz" in Lower Manhattan's retail leasing scene.

MADISON AVENUEMadison Avenue is New York City's luxury submarket, and has long been the home of haute couture international fashion retailers and exclusive international jewelers. These tenants demand the best top tier location Manhattan has to offer. The luxury strip of Madison Avenue runs from East 57th Street north into the East 70’s. For this reason, as well as the prestige associated with the name "Madison Avenue", this corridor continues to be desired by international retailers and new luxury brands. Madison Avenue is fueled by brand recognition high-end boutiques searching for the most successful upscale location.

FLATIRON/UNION SQUARE WESTThe Flatiron district, in Midtown South, spans the portion of Fifth Avenue between 14th and 23rd Streets, Broadway from East 17th Street to East 23rd Street, and Union Square West from East 14th to East 17th Streets, and is home to a variety of retailers, including apparel, home-furnishing stores, gyms, and restaurants. Flatiron is fueled by affluent area residents, proximity to the New School and Union Square Park, and by this neighborhood's high desirability within the growing tech and new media industries which seek to secure trendy office space.


NEW YORKKEY RETAIL STREETS & AREAS

SOHOSoHo, which stands for “South of Houston” was once famous as a destination for artists and galleries. Today, it is one of New York’s classic Midtown South shopping districts. Its boundaries include the area south of West Houston Street to Canal Street, Broadway to West Broadway. SoHo is another world-known retail shopping hub and continues to be a hot entertainment and shopping destination for locals and tourists alike. The retail landscape continues to evolve as domestic and international brands establish their presence in this coveted neighborhood with art galleries, restaurants, and a diverse mix of boutiques making this one of the trendiest and desired submarkets in Manhattan.

MEATPACKINGThe Meatpacking district was originally home to butcher shops and meatpacking plants, and over the past few decades has evolved into one of the most popular tourist destinations for shopping and dining. Its borders run from Gansevoort Street, north to West 16th Street, Hudson to West Streets. Once considered among the grittiest of Manhattan's neighborhoods, this submarket now welcomes graphic designers, fashion design houses, museums, hotels, luxury boutiques, and several of Manhattan's finest restaurants and trendy night clubs. This Midtown South neighborhood has evolved into a high-end shopping destination driven by the success of the revitalized High Line Park (which attracts five million tourists annually), the massive Chelsea Market complex, and the new Whitney Museum.

FIFTH AVENUEThe Fifth Avenue corridor is New York City's premier retail corridor and is home to numerous high-end fashion tenants, internationally recognized retailers, and global brands. More recently, athletic wear tenants such as Nike and Under Armour have opened and plan to open on Upper Fifth Avenue (49th-60th streets). This upscale retail submarket is globally recognized, highly patronized by tourists, and driven by the dense office market population. This corridor commands the highest asking rents in Manhattan and nationally. As of late, Upper Fifth Avenue leasing activity has stalled with the majority of activity on Lower Fifth Avenue (42nd-49th Streets) where six new retail deals were announced this year including UGG and Club Monaco.

HERALD SQUARE/WEST 34TH STREETHerald Square/West 34th Street falls into the Herald Square/Penn Plaza submarket of Midtown Manhattan. It houses two of the most iconic landmarks in New York City, as it is home to Macy’s department store in Herald Square and the Empire State Building, located at 350 Fifth Avenue. West 34th Street is a shopping destination for daytime workers and tourists, and is also populated by commuters traveling to Penn Station at Seventh Avenue. This stretch of retail is the home to many flagship stores of mainstream retailers, including Sephora, Footlocker, Gap, Victoria’s Secret, Lindt Chocolate, and Naturalizer Shoes. Recently, Herald Square has added two prominent names to its tenant roster—Midtown’s first Target department store and e-commerce giant Amazon’s second brick-and-mortar bookstore in Manhattan.


NEW YORKMARKET OVERVIEW

KEY AREAS / STREETS/SHOPPING CENTERS

CONSUMER PROFILE

MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT FOR UNIT OF 2,000 SQFT

RANGE OF UNIT SIZES

Times Square BowtieTourists, local business density

Sephora, Forever 21, American Eagle, Swatch, Sunglass Hut, M&M’s World, H&M, Levi’s, U.S. Polo Association, Express, Skechers, Old Navy, The Gap, T-Mobile, Loft, Arabian Oud, CVS, Swarovski, Line Friends, Steve Madden, McDonald’s, Hard Rock Café, Olive Garden, Modell’s, Applebee’s

Coty, Pele Soccer, JD Sports, Krispy Kreme, Soarin’ by Discovery

$500-$1,750 PSF 585-10,345 SF

Lower Manhattan

Tourists, local business density, local shoppers

Hermes, Tiffany & Co., Century 21, Canali, TJ Maxx, Ann Taylor, The Gap, Cipriani, Abercrombie & Fitch, Superdry, Salvatore Ferragamo, Urban Outfitters, Ermenegildo Zenga, Zara, Bonobos, Sunglass Hut, Tom Ford, Anthropologie, City MD, Apple, Whole Foods, Marshalls, Capital One, Indochino, Crunch Fitness, Club Monaco, Lego, Equinox, COS, Invicta, H&M, 10 Corso Como, Equinox

UNTUCKit, Oliver Peoples, Suitsupply, William Barthman, H&R Block, Rebag, Madewell, Innisfree, Convene, City MD, Five Iron Golf, Life Time Fitness, Jennifer Furniture, Blo Blo Dry Bar, OrangeTheory Fitness, NY Sports Club, Paper Source

$100-$350 PSF 500-24,487 SF

Madison Avenue(E. 57th-E.72nd Sts.)

Tourists, local shoppers

Hermes, Ralph Lauren, Barneys NY, Chanel, Giorgio Armani, Gucci, Cartier, Chopard, Alexander McQueen, Jaeger LeCoultre, Baccarat, Bottega Veneta, Jimmy Choo, Tod’s, Paul & Shark, A Lange & Sohne, Santoni, Apple, Jitrois, Louis Leeham, Madewell, UGG, Givenchy, Breitling, Yves Salomon, Elie Saab, Giuseppe Zanotti, Moynat, Moncler, Lanvin, Edie Parker, Georg Jensen, Tom Ford, Vhernier, N. Peal, Ba&sh, Ghurka, Robert Clergerie, Peloton, Celine, FP Journe, Diptyque, Wolford, Intermix, Zadig & Voltaire, Montblanc, Akris

Rebag, Deciem, Schutz, Ralph & Russo, Joe Bananas, Alexandre Birman, Gabriela Hearst, Il Gufo, L’Agence, Johnny Was, The Westside, Nili Lotan, Balenciaga, Brush, Reformation, Jennifer Tattanelli, Missoni, Mackage, Zimmermann, Sergio Rossi, Fueguia, Mark Cross, Monique Lhuillier, Off White, Ramy Brook, Balmain, AuRate, Morgane Le Fay, Lilly Pulitzer, Byredo, Oliver Peoples

$825-$1,100 PSF 220-4,798 SF




CONSUMER PROFILE


RANGE OF UNIT SIZES

Flatiron/Union Square West Local shoppers

H&M, Anthropologie, Sephora, Victoria’s Secret, Eileen Fisher, Club Monaco, Tory Burch Sport, lululemon, Bonobos, Sweaty Betty, Skechers, Paper Source, American Eagle AE Studio, NYX Cosmetics, Lou & Grey, Frye Company, Rent the Runway, Alo Yoga, UNTUCKit, Soul Cycle, The White Company, Monster Cycle, Aritzia, Theory, Flying Tiger, Bandier, Filson, Doc Marten, Scotch & Soda, Zara

Title Boxing, Lovesac, Pergola, Free People, Outdoor Voices, Sleep Number, Bulletin, The Well, Rumble Fitness, Camp (Buzz Feed), Union Square Play, Kindbody, Brideside, Spacious, Godiva, LoveSac, Hey Dey, Warner Brothers Entertainment

$135-$600 PSF 400-13,000 SF

Fifth Avenue: 42nd-49th Streets


H&M, Barnes & Noble, Sephora, NBA Store, Zara, Guess, & Other Stories, Oakley, Tommy Bahama, Ted Baker, Skechers, Urban Outfitters, Best Buy, Aldo, The North Face, Asics, Adidas, Walgreens, COS, Calzedonia, Vans, Intimissimi, Aritzia, Sunglass Hut, lululemon, Timberland, Zara, H. Stern

Five Below, L’Occitane en Provence, Puma, Laderach, Club Monacco, UGG

$700-$967 PSF 2,300-10,472 SF

Fifth Avenue: 49th-60th Streets


Saks Fifth Avenue, Bergdorf Goodman, Salvatore Ferragamo, Tiffany & Co., Harry Winston, Gucci, Cartier, Prada, Bulgari, Armani, Coach, Versace, Uniqlo, Valentino, Dolce & Gabbana, Microsoft, Longchamp, Dyson, Victoria’s Secret, Apple,Abercrombie & Fitch, Nike, St. John, Wempe, Mikimoto

Under Armour, Delvaux, Chocheng

$2,463-$3,500 PSF 900-9,000 SF




CONSUMER PROFILE


RANGE OF UNIT SIZES

Meatpacking Tourists, local shoppers

Zadig & Voltaire, Intermix, Diane von Furstenburg, Apple, La Perla, Vince, Christian Louboutin, Theory, Kiehls, Bond No. 9, The Kooples, Zimmermann, Niquea.d, Carlo Pazolini, Warby Parker, Restoration Hardware, Madewell, Parfums de Marly, Tesla, Maiyet, Sneakersnstuff (SNS), Hyundai/Genesis, Samsung, Trina Turk, ChromeHearts

Hermes, Marcus, Loro Piana, Vans, Med Men, Belstaff, WIX, Brunello Cucinelli, Frame Denim, Fjallraven

$275-$550 PSF 806-22,000 SF

SoHo Tourists, local shoppers

Stella McCartney, Alexander Wang, MAC, Patagonia, Coach, Bloomingdale’s, Victoria’s Secret, Prada, Moschino, Uniqlo, Under Armour, Sunglass Hut, & Other Stories, Maud Frizon, Rebecca Taylor, Proenza Schouler, Dolce & Gabbana, Balenciaga, The Kooples, Byredo, Balmain, Morgane Le Fay, Tomorrowland, Versace, Adidas, Canada Goose, Vera Bradley, Tous, Frame Denim, Free People, Linda Farrow, RM Williams, Dolce Vita, Pinko, Eight Senses, Monica Vinader, Follain, Vivienne Hu, Djula, Dr. Marten’s, Amazon, Alo Yoga, Herno, Off White, Moncler, Saje, Faith Connexion, Brett Johnson, Sephora, Gentle Monster, Champion, Mango, lululemon, Woolrich, Brandy Melville, Madewell, Anthom, Dreams on Air, Desigual, The North Face

Calzedonia, Tom Dixon, Eleventy, Anine Bing, Kotn, Schutz, Mansur Gavriel, Bruno Magli, McKenzie Childs, Aquazzura, Bang & Olufsen, The Face, One King’s Lane, Sunspel, PIQ, Mykita, Ben Sherman, Jack Vartanian, Winky Lux, Grace Loves Lace, Redemption, Space in the Raw, Gucci, Thursday Boot Company, Argent, Buscemi, Falconeri, Poggenphol, Loewe, Alexander McQueen, Rossignol, Gauran Shah, Norrona, Moose Knuckles, Eloquii, Kenzo, AuRate, L’Agence, Society Limonata, Tamara Mellon, Nanushka, Lazaro

$115-$900 PSF 200-11,794 SF


New York City continues to be the world’s premier dining city housing restaurants that space a variety of price points, cultures, and palates at every location.Due to healthy economic performance, New York City’s fine dining establishments continue to be busy every night of the week, catering to the well-heeled gourmand. Some of these successful restaurants include Le Bernadin, Jean Georges, Eleven Madison Park, and Per Se.

However, casual fare remains in the forefront. Some trends have halted, including the Japanese-based, stand-up-and-eat concept, Ikinari Steak. This fast casual eatery rapidly expanded in Manhattan and is slowly closing their doors despite its cult following. As of late, one hot quick serve restaurant (QSR) that is in the expansion mode is Taco Bell Cantina who is growing its New York footprint by serving shareable appetizers and alcoholic beverages in it Cantina model, urban design setting.

New ethnic cuisines and international food boutiques continue to find homes in New York City whether at the fine dining or casual end. Some of the newer entrants include chef David Chang’s “Fuku”, serving casual lunch-style chicken sandwiches. Sushi-type, quick serve restaurants featuring raw fish Poke, the latest food trend from Hawaii marches on. Coffee houses and juice establishments, have slowed in their expansions in New York City while Japanese ramen noodles and Mediterranean grain bowls and all salad concepts continue to expand here.

Following these trends, other food groups that have made the New York scene include donuts and pastry shops, chocolate cafes, nuts & candy shops, and vegan-style ice cream establishments while bubble tea has slowed.

Food Halls have also braked their space requirements in the New York City eating arena. Last year, this hot trend of dining hall, kiosk-type choice eating expanded rapidly in the challenging New York City restaurant environment. The trend exploded with the draw of food diversity and ethnic choices all under one roof at one destination.

Manhattan is saturated with new food establishments catering to the busy office lunch crowd and continues to handle the flow of new concepts. The QSR lease velocity continues on, proving to be the prominent industry space user in Manhattan retail leasing and is expanding to the outer boroughs as well.

Big quick-serve Manhattan brands include expansions by: Pret A Manger, Chick-fil-A, by Chloe, Shake Shack, and Chipolte plus salad-concepts such as Chop’t, sweetgreen, Cava Grill, and Dig Inn are all flourishing. More recently, The UK-based ramen shop Wagamama, has landed in New York city with its communal table eating style.

As of late, some juice chains that were on a rapid expansion plan in Manhattan, such as Jamba Juice, Dr Smood and Joe & The Juice have slowed in their real estate needs.

NEW YORKFOOD & BEVERAGE


FOOD & BEVERAGE MARKET OVERVIEWNEW YORK

KEY AREAS CONSUMER PROFILE

FOOD & BEVERAGE OPERATORS INCLUDING

RENT FOR 3,500 SQFT UNIT

Grand Central Local business density, tourists

Pret A Manger, Cosi, Schnippers Quality Kitchen, Sushi Ginza Onodera, Fields Good Chicken, Dr Smood, Joe & The Juice, Sushiro, Pokateria, sweetgreen, Verts Mediterranean Grill, Vien, Dill & Parsley, Blue Bottle Coffee, Honeygrow, Cava Grill, Bluestone Lane, Northshore Poke, by Suzette, Chick-fil-A, Ole & Steen, Sticky’s Finger Joint, Taco Dumbo, Omakasa, Los Tacos No. 1, Proper Food

$300-$370 PSF

PlazaLocal residential population, business density

Ocean Prime, Marea, Le Bernardin, 21 Club, Del Frisco's, Del Frisco’s Grill, Quality Italian, Limani, Fogo de Chao, Dos Toros, Joe & The Juice, Maison Kayser, Le Pain Quotidien, Pret A Manger, Verts Mediterranean Grill, Wagamama, Black Seed Bagel, Fuku, Just Salad, by Chloe, Blue Bottle Coffee, Proper Food, Dunkin

$250-$315 PSF

Midtown WestLocal residential population and secondary retail

Meltshop, Little Beat, Ted's Montana, Carmines, Pot Belly Sandwich, Chipotle, Per Se, Chick-fil-A, Pret A Manger, Le Pain Quotidien, Masa, Arby’s, Dig Inn, Fresh & Co., Urban Market, Maple, Bond 45, Meatball Shop, The Noodle Shop, Junior’s Bakery & Restaurant, Dig Inn, Bread & Butter, King of Kobe, Blue Ribbon Fried Chicken, Talad Wat, Taco Bell Cantina, Poke Bowl, Apes & Peacocks, Cabo Wabo, Just Baked, Urbanspace, Cedric’s at The Shed, Paris Baguette, Krispy Kreme, Shake Shack, Sugarfish

$150-$450 PSF






Flatiron, Meatpacking

Local residential population, business density

Eataly, Shake Shack, Buddakan, Dos Caminos, Spice Market, The Standard Grill, Obika. Catch, Mozzarella Bar, Dig Inn, sweetgreen, Sugar Factory, Tsurutontan, by Chloe, Sushirrito, Sugarfish, Burger & Lobster, Lotus Blue Dongitan, Tender Greens, Chick-fil-A, Ole & Steen, Il Mulino, Teazzi Tea Shop, Bagatelle, La Cubana, Krispy Kreme, Punch Bar, Godiva Café

$225-$500 PSF

Upper East Side Local residential population

Shake Shack, Jersey Mike's Subs, Luke's Lobster, Bareburger, Gregory's Coffee, Mighty Quinn’s BBQ, Grain Bowl, Joe & The Juice, sweetgreen, Otto’s Taco’s, Baked by Melissa, Vivi Bubble Tea, Zavo Restaurant & Lounge, Oath Craft Pizza, Starbucks, Pret A Manger, Taco Bell, Levain Bakery, Paris Baguette, BLT Prime, Double Twister Ice Cream

$98-$240 PSF

Upper West Side Local residential population

Meatball Shop, Parm, Carmine's, Lenny's, sweetgreen, Sugar Factory, Crave Fish Bar, H&H Bagel, Panda Express, Two Bean Coffee, Dig Inn, Cipriani Food Hall, Shake Shack, Viand Café, Van Leeuwen Ice Cream, Blue Bottle Coffee, Oath Pizza, Joe & The Juice, Inoue Sushi, Jack’s Stir Brew Coffee, KFC, Holy Schnitzel, Don Pedro’s, Big Gay Ice Cream, Big Gay Ice Cream, Café Metro, Bareburger, Calle Ocho

$100-$166 PSF






Lower Manhattan

Local residential population, business density, tourists

Melt Shop, Mighty Quinn's BBQ, Cipriani, Chop't, Capital Grille, Delmonicos, Bobby Van’s Steakhouse, Morton's, Potbelly Sandwich, Eataly, Organic Avenue, The Malt House, Oaxaca Taquera, Black Fox Coffee, Smashburger, Hudson Eats Food Court, Birch Coffee, Café Grumpy, Verts Mediterranean Grill, Just Salad, Blue Bottle Coffee, Joe & The Juice, Chick fil-A, Dos Toros, Wasabi Sushi & Bento, Black Seed Bagel, Fuku, Blue Ribbon Sushi, Dig Inn, Le District Market Place, Little Beat, Cava Grill, Taco Bell Cantina, Dill & Parsley, Just Baked, Dunkin, & Pizza, Legends Hospitality Marketplace

$135-$292 PSF

SoHo, NoLitaLocal residential population, tourists

The Dutch, Parm, Burger Fi, Bareburger, David Burke Kitchen, Lure Fishbar, Combina, Mimi Cheng’s Dumplings, Baked by Melissa, Chef’s Club by Food & Wine, Pressed Juicery, Think Coffee,Coco Pazzo, Cava Grill, Taco Dumbo, Jean George, Dig Inn, Sugarfish, Torishiki, Bluestone Lane, Levain Bakery, Zooba, Mochidoki, Mister French, Bondi Sushi

$100-$350 PSF

No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.

© 2019 Cushman & Wakefield. All rights reserved.

ERIKA SCHANKEManaging DirectorAmericas Retail Services1290 Avenue of the AmericasNew York, NY 10104, USATel: +1 212 841 5024Mob: +1 404 680 [email protected]

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