Manhattan Retail MarketView

Q2 2014 CBRE Global Research and Consulting

U.S. Consumer Confidence NYC Job Count U.S. Jobs Added NYC Private Sector Employment (JUN ’14) 85.2 (Jun ’14) 20,700 (Jun ’14) 288,000 (May 2013-May 2014) 2.3%

Market Overview Retail News In June, U.S. employers added 288,000 store with a location in Chelsea, will open jobs, marking the fifth consecutive its second Manhattan store at 26 Greene • Thor Equities is under contract to month when more than 200,000 jobs Street in SoHo. Likewise, Zimmerman, an acquire roughly 50,000 sq. ft. of retail were added.1 This drove down the Australian clothing and swimwear retailer at 530 Fifth Avenue for $595 million unemployment rate to 6.1%, the lowest with a location in SoHo, will open a store and recently closed on the purchase of reading since September 2008.2 The U.S. in the Meatpacking District. Additionally, 685 Fifth Avenue for $475 million. Consumer Confidence index reached 85.2 Italian men’s fashion retailer Caruso will in June, its highest since January 2008.3 open its first U.S. store at 45 East 58th • J. Crew, Paul Smith and Posman Books Meanwhile, U.S. retail sales rose from April Street, an 11,000-sq.-ft. flagship in the recently signed leases at Brookfield to May by 0.3%, driven by sales of motor Plaza District. Place and will join tenants such as vehicles and home-improvement materials, Theory, Michael Kors, and Hermès, which typically surge in the spring.4 Swedish-based fast-fashion retailer H&M bringing the property to 85% leased. has an established presence throughout In May 2014, New York City’s private the borough. This fast-growing retailer • Samson Management purchased two sector employment rate posted a year- accounts for some of New York City’s retail condos for $35 million at 451 over-year increase of 2.3%.5 Between April largest leases, with 42,000 sq. ft. at 4 Lexington Avenue, where TD Bank and May 2014, the job count increased Times Square, 57,000 sq. ft. at 589 Fifth and GRK, a Mediterranean chain to 20,700, with the leisure and hospitality Avenue and, most recently, 63,000 sq. restaurant, will each occupy a ground- sector experiencing the most significant ft. at Herald Center. H&M’s signage at floor unit. growth.6 The city’s unemployment rate 4 Times Square has become part of the from April to May remained unchanged at Manhattan skyline, a testament to the • Cooper Investors Inc. recently sold 7.9%, a 0.9% decrease from the previous brand’s ubiquity. The firm will expand its a three-level, corner retail condo at May.7 position in Manhattan through the opening 377 Broadway for $10 million. The of its sister label, & Other Stories, which 15,000-sq.-ft. space located in TriBeCa Manhattan continues to prevail as a global signed for a space at 575 Broadway in features 9,600 sq. ft. on the lower level, retail hub, with an increasing number SoHo, while COS, H&M’s high-fashion 4,500 sq. ft. on the ground floor and of international tenants opening in the brand, is slated to open this fall in SoHo 1,200 sq. ft. on the mezzanine. market. Lazzoni, a Turkish luxury furniture on Spring Street.

1 U.S. Department of Labor 4 U.S. Department of Commerce 7 New York State Department of Labor 2 U.S. Department of Labor 5 New York State Department of Labor 3 The Conference Board 6 New York State Department of Labor

Figure 1: Notable Transactions - Q2 2014

Address Size (Sq. Ft.) Tenant Industry

575 Broadway 10,915 & Other Stories Apparel/Accessories 158 W. 27th Street 9,661 Peloton Interactive Gym 45 E. 58th Street 9,185 Caruso Apparel/ Accessories 499 Broadway 8,000 Brandy Melville Apparel/Accessories 875 Washington Street 1,250 Zimmerman Apparel/Accessories 202 Elizabeth Street 1,000 Coop & Spree Apparel /Accessories 273 Lafayette Street 900 Dita Eyewear

Source: CBRE Retail Research Group, Q2 2014. © 2014, CBRE, Inc. © 2014, CBRE, Inc. Source: CBRE Retail Research Group, Q2 2014. As Broadway now caters to retailers like retailers like now caters to As Broadway Desigual, Madden and Express, Steve increasingly tenants have luxury fashion smaller to streets that provide gravitated With boutique feel. floor plates and a on Spring Street and limited availability average asking Street—where Prince to $1,250— rents range from $675 searching for tenants have begun such as Greene spaces along streets Street. for its upscale Historically known Street is now furniture stores, Greene like Chloé, home to luxury retailers Dior Homme and Stella McCartney. The street provides an unparalleled boutique shopping experience among architecture and Belgian cast-iron year alone, In the last block paving. the average asking rent increased from $200 per square foot to $500 Greene per square foot. In particular, streets and Spring Street between Prince has evolved into one of the more desirable blocks for luxury retailers. with its lease set the tone Vuitton Louis at 116 Greene Street ten years ago and recently expanded its store to open & Co. has occupied Tiffany an atelier. 97 Greene Street since 2012 and Street in a expanded into 106 Wooster space that combines the floor-through opened a pop-up two locations. Fendi store at 122 Greene Street that will remain open through the 2014 holiday MCM Handbags season. Most recently, signed on at 100 Greene Street, which was formerly occupied by Jill Sanders. The presence of high-end retail tenants has made Greene Street a coveted target for retail investment. Previously an art district known for its known for its an art district Previously slowly galleries, SoHo has lofts and for into a mecca been transformed retailers. The and fast-fashion boutique resides in its neighborhood’s appeal a unique shopping capacity to provide a high volume experience that attracts as well as local of international tourism in availability, shoppers. Limited space strong demand addition to retailers’ in the area, to establish a storefront for prospective may pose a challenge rents have tenants, as some asking sq. ft. topped $1,500 per The presence of international retailers and high-fashion tenants in SoHo In the past two continues to grow. were years, Balenciaga and Versace added to the roster of luxury tenants, both opening stores on Mercer Street. handcrafted a Vienna-based Wille, Frey opened a location at 122 jeweler, Street, its second in Manhattan. Prince luxury brand Céline will be the French latest addition to the group, with a new Street within store opening on Wooster the next year. Broadway once contained the most attractive retail space in SoHo for high- end international retailers. However, today the corridor predominantly serves as a location for mass-market retailers Tenants that require larger floor plates. Athletica, Gap, such as Lululemon have each opened Zara and Topshop benefiting from stores on Broadway, the corridor’s heavy foot traffic. Brandy Melville recently doubled its store space by moving from 518 Broadway to 8,000 sq. ft. at 499 Broadway. Ground-floor asking rents on Broadway averaging continued to rise this quarter, $850 per sq. ft. between Houston and Broome streets.

streets such as along s along for space Greene Street begun searching asking rents tenants have here average where average $1,250— $675 to Prince Street— range from Spring Street andSpring Street availability on availability With limited hborhood Nei g ured Feat Soho

Q2 2014 Manhattan Retail | MarketView 2

© 2014, CBRE, Inc. CROSBY STREET CROSBY

DESIGN STORE DESIGN

MOMA

URCE SO PAPER

EMS

HOLLISTER AVEDA (2ND FLOOR) DUANE READE SUNGLASS HUT OMG MIRO CAFÉ CAPITOL ONE (2ND) DESIGUAL RICKY’S NYC BROADWAY GOURMET MARKET AVAILABLE OLSTEAD PROPERTIES EXPRESS & EXPRESS MEN ZARA FOREVER 21 BLISS (2ND FLOOR) ARMANI A/X

DEAN & DELUCA CONVERSE H&M DAVID Z. BANANA REPUBLIC HSBC UNIQLO FORAVI OMG STEVE MADDEN CLUB MONACO VINCE CAMUTO AT&T EMS MIZ MOOZ SAGA SHOES AMSTERDAM MICHAEL K. TEXTILES (TO BE VALLEY NATIONAL BANK) SO GOOD JEWELRY VOLCOM NECESSARY CLOTHING FOOT LOCKER VALLEY NATIONAL BANK PROPEL FOOTWEAR BANK OF AMERICA MADEWELL J. CREW MEN’S TOPSHOP CITIBANK TIMBERLAND JEWELRY CAFÉ ALDO JOE FRESH INTERNATIONAL CULINARY INST. ARITZIA TO BE MICHAEL KORS DUNE GUESS BY MARCIANO ALL SAINTS FORECAST FOOTWEAR WHITE HOUSE BLACK MARKET MAC BLOOMINGDALE’S TOMMY HILFIGER DENIM SUNGLASS HUT PANDORA BEBE BROADWAY

As of 1/31/14

JEANS

CHASE BANK CHASE SOHO CAFÉ SOHO

BOSE CB 2

BUFFALO MUJI PUMA H & M GUESS

SECRET SECRET MANGO VACANT PINK BY G-STAR

LACOSTE VERIZON BANK OF AMERICA BASTARD JUBILEE MELVILLE SEPHORA LEVIS ITEM ATHLETICA OLD NAVY

AVAILABLE MYSTIQUE AVAILABLE AVAILABLE BOUTIQUE CLOTHING

CAFÉ DUKE VICTORIA’S VICTORIA’S BILLABONG STARBUCKS

YELLOW RAT LULULEMON

CAPITAL ONE NECESSARY ALDO SHOES GAP WOMEN

NO RETAIL RETAIL NO (AVAILABLE) WELLS FARGO

TO BE BRANDY YOGA WORKS

STEVE MADDEN

MARKETPLACE

DUANE READE

CARLO PAZOLINI UNDER ARMOUR PSYCHIC SOHO

ISE FOUNDATION DERMALOGICA

AMERICAN APPAREL

BAKED BY MELISSA LADY FOOT LOCKER

MANGO CHILL ON BROADWAY LUCKY BRAND JEANS

DEVELOPMENT SITE EXSTAZA

SCOOP NY SPORTS CLUB (2ND) PRADA AVAILABLE

HUGO BOSS INSTITUTE

MONCLER QUIKSILVER

BROADWAY DISCOUNTS MALL

KENNETH COLE 3NY PEARL RIVER MART AMERICAN EAGLE

FREE PEOPLE FREE

PRINCE STREET SPRING STREET HOWARD STREET HOWARD

TO BE & OTHER STORIES GRAND STREET BROOME STREET

THE SCHOLASTIC STORE

NESPRESSO

MUSEUM

JAMES PERSE JAMES BEN SHERMAN SHERMAN BEN IRO DONALD JUDD ART ART JUDD DONALD WEST HOUSTON STREET HOUSTON WEST

AVAILABLE DOPDOP SALON (BELOW) RESIDENTIAL VERSACE VERA WANG VERSANI HAVEN BALENCIAGA LURE RESTAURANT/BAR (DOWNSTAIRS) DC

CAPITAL ONE (BACK) LEVIS (BACK) NO RETAIL FIORENTINI + BAKER CITIBABES ASH FOOTWEAR GARAGE VIVIENNE TAM LOLE CUTLER AND GROSS TED BAKER BACK OF CB2 EATERY BACK OF JUBILEE BACK OF Z GALLERY AGNES B V FILES CITIBANK CAFÉ DUKE (BACK) CARLO PAZOLINI (BACK) MERCER STREET MERCER

BURTON BURTON

OPTICAL OPTICAL

SALE) SPADE KATE KITCHEN PAIGE VINCE CAFE VPL

3X1 A.P.C.

KEETSA

VACANT NIKE AGENT CARVEN

SUIT SUPPLY SUIT TO BE PINEDA MARNI INDEX FACIAL

THE MERCER MERCER THE CUPCAKE CREMIEUX VACANT SOLSTICE MACKAGE

STUDIO HAT CLUB GARAGE FANELLI’S

NO RETAIL NO RETAIL

JOE’S JEANS RAG&BONE JOURNELLE

GABBANA MAJE BE TO MONTAUK

COCO MAT LAZARO SOHO LAZARO (GALLERY) BABELAND HELMUT LANG NO RETAIL

QUOTIDIEN ORLA KIELY VALERIA SMITH GEORGETOWN SWEATTY BETTY UGG AUSTRALIA

PROVOCATEUR BOUTIQUE

ZIMMERMAN IVANKA TRUMP

VISIONAIRE, RESTAURANT TO BE KOOPLES

3.1 PHILLIP LIM V. MAGAZINE V.

JAMBA JUICE R BY 45 RPM

PINEDA COVALIN

PARKING LOT (FOR PARKING MARC JACOBS HENRIK VIBSKOV VIBSKOV HENRIK PURL LE PAIN PAIN LE FINE ARTS INC.

TO BE DOLCE &

CONSTRUCTION

SURFACE TO AIR CANAL LIGHTING

LIZARRAN TAPPAS LIZARRAN TAPPAS

MERCER PARKING MERCER PARKING CRITERIA OTHER STUART WEITZMAN STUART ANTIQUE GARAGE BALENCIAGA MEN SPLENDID TO BE EYEGLASS STORE J. CREW J. RONALD FELDMAN TOTO SHOWROOM ALEXANDER WANG

ZADIG & VOLTAIRE

RUDY’S MUSIC RUDY’S

THE HUNDREDS THE

MILLS

INTERMIX INTERMIX

EDELMAN SAM

SUNBURY TEXTILE TEXTILE SUNBURY

VACANT

MIU MIU MIU

IF SOHO NY SOHO IF

EVOLUTION OCHRE FRYE

TUMI

BITTAR ALEXIS

KITEYA MICHAEL KORS MICHAEL OPERA GALLERY OPERA

FJALL RAVEN FJALL DASH

GALLERY AFA

JOHN VARVATOS JOHN AVAILABLE

AMERICAN APPAREL AMERICAN

APPLE APPLE INGO MAURER LLC CITE USM MODULAR FURNITURE LOCATION ONE CHANDLER PIERCE & YOMA TEXTILES BLUE IN GREEN ELECTRONICS STORE BOCA GRANDE FURNISHINGS GANDIA BLASCO GUDRUN SJODEN ARTEMIDE RON BEN-ISRAEL CAKES (2ND) FLOU

FENDI POP-UP LOUIS VUITTON STELLA MCCARTNEY DESIGN WITHIN REACH BUILDING ENTRANCE GALERIA MELISSA TO BE MCM ALICE & OLIVIA TO BE REBECCA MINKOFF COTELAC Y-3 YOHJI Y NATIONAL MOROSO/ MAHARAM SMITH PAUL B & B ITALIA TUI LIFESTYLE HUGO BOSS ALESSI FLOS COSTUME SAINT LAURENT SEIZE SUR VINGT JOSEPH LEASED TECHNOGYM DIESEL BLACK GOLD VACANT TRESPA/ARPA MOLTENI & C JACK SPADE

GREENE STREET GREENE

CAMPER

J. LINDEBERG J.

JEANS ACNE

LAUREN

YURMAN DAVID BE TO

ETRO

COMPANY

ISABEL MARANT ISABEL

DE LA ESPADA LA DE

MOLTON BROWN MOLTON

RALPH RALPH TOUS

CHLOE TILE SICIS BEATS

KARTELL GALLERY GALLERY

KISAN ASHE JON JACQUES

NATUZZI

AROMA LEASED TASCHEN ADRIANO ONASSIS

CHOCOLATES HALSTON FOSCARINI BROCADE MORRISON HOTEL MORRISON

OUR NEW FRIENDS NEW OUR LUCE PLAN & GROC. ANNA SUI GALLERY

REALISM

BLACKBODY AVAILABLE BRIAN KISH

OAKLEY (AVAILABLE)

BOFFI SOHO

TO BE DIOR

FORMICHETTI

AESTHETIC VOSGES TO BE NICOLA

BO CONCEPT

COS CARCANAGUES

FRAGMENTS J. LINDEBERG FONTANA ARTE GOLDSCHMIED FLAIR

NICOLE MILLER FOUNDATION A BATHING APE

DIOR HOMME

NO RETAIL NO ARCADIA GALLERY

JONATHAN ADLER ETIENNE AIGNER POMEGRANATE BISAZZA MOSAICO TO BE BARE MINERALS BARE BE TO

WARBY PARKER LONGCHAMP BANG & OLUFSEN AVAILABLE

LIGHTING COMPANY

BURBERRY BURBERRY MOODS OF NORWAY MIMI FERTZ GALLERY MANGO LOOPY OLIVE’S CAFE OLIVE’S

TO BE REED KRAKOFF BARCELONA CUSTO

MONACO MONACO MULBERRY

KELLEY & PING REST ZABETE KIMA PROENZA SCHOULER

SPACE NK APOTHECARY NK SPACE

KIKI DE MONTPARNASSE CONSTRUCTION FREY WILLE FREY CLUB

SASS & BIDE & SASS TIFFANY & CO. PROJECTS DEITCH

DIESEL

WOLFORD

ANTIDOTE THE AVAILABLE SABON

NARS

PAS DE CALAIS DE PAS

VACANT

VACANT LOT VACANT CHANEL MIYAKE CAMPER

BULTHAUP AVAILABLE CAPPELLINI MACLAREN BABY LOT PARKING FLOR BLUE DOT AVAILABLE ADIDAS ORIGINALS

PLEATS PLEASE ISSEY ISSEY PLEASE PLEATS SAVOIR BEDS LESLIE - LOHMAN GALLERY REPUBLIC OF FRITZ HANSEN SWISS INSTITUTE PHOTO SHOOT GALLERY GARAGE PARKING TURON TRAVEL

FORMAT FLORENSE HANSON FITNESS (2ND) SAM BROCATO SALON (1ST) DRAWING ROOM SAM BROCATO SALON TO BE VARDA SHOES ILORI THE RUG COMPANY RESIDENTIAL CHRISTOPHER FISCHER PRIVATE STOCK TO BE BAND OF OUTSIDERS GLASGOW CALEDONIAN UNIVERSITY AVAILABLE BCBG TIBI GIGGLE TSE BARNEY’S CO-OP JOIE LXR & CO EQUIPMENT BUCKET FEET ICEBREAKER MORGANE LE FAY

WOOSTER STREET WOOSTER

TO BE LANVIN BE TO

LUCKY BRAND LUCKY CO-OP

CROCS

COLE HAAN COLE

ARTISIT AVAILABLE L’OCCITANE

FAB VACANT

D.V.F. WINK OSKLEN

VACANT

SELIMA

BARBOUR MARTEN DR.

OPTIQUE NO RETAIL NO GALLERY

PIPERLIME CASSINA STEPEVI VARDA PATAGONIA

TRUE RELIGION TRUE NO RETAIL OLD BLACK AVAILABLE GARAGE GOURMET VICTORINOX

RESIDENCE

BARBARA BUI SANDRO

TRICO FIELD FRED PERRY

TO BE CELINE BRUMMEL BEAU SHABBY CHIC

LIGNE ROSET

FOLLI FOLLIE FOLLI SLEEP STUDIO EARTH ROOM ROOM & BOARD

LF BOUTIQUE LF DWELL STUDIO

TO BE WOOLRICH MAGEL TAMARA

Figure 2: SoHo Figure SATURDAY SPADE KATE POLTRONA FRAU SPA WHITE & RED

THE NORTH FACE DRAWING CENTER

MIGUEL ANTOINNE

THEORY

AVAILABLE OF SOHO OF AVAILABLE (2ND FL.) LYNN PARK UNO DE 50 DE UNO TO BE NEW YORK INK AVAILABLE AVAILABLE PERFORMING GARAGE

AVAILABLE SOHO ART MATERIALS

LE PETIT CAFÉ PETIT LE ATELIER MINYON ATELIER STUDIOS STUDIOS

MARIEBELLE ART FOUNDATION FUND SPENCER BROWNSTONE

ENTRANCE TO RESIDENTIAL

ARTISTS ARTISTS

OLIVE & BETTE’S & OLIVE GALLERY

AVAILABLE MARKET SUNRISE

METHOD BAR

MEISEL K. LOUIS

ARGYLE JEREMY NO RETAIL NO

YASO NEW YORK NEW YASO VACANT

CONNECTION

3 BAR ST. BROOME STREET GALLERY STREET BROOME

Manhattan Retail | MarketView OPTICIAN FREDERICKS

Q2 2014

COACH

SUNGLASS HUT SUNGLASS FRENCH

KENN’S BROOME BROOME KENN’S

TOWN BADICHI

MORGENTHAL

ALCHEMISTS

THOMPSON

CAMPTON GALLERY

THINK PINK

ART GALLERY

MARTIN LAWRENCE

SPIRITS

SOHO WINE AND

CUTLER SALONS

DESIGN

PORSCHE

ARI

POP

DOS CAMINOS

LIE TAHARI

BANK OF AMERICA

EVERYMAN

THE UPS STORE

AKSEL

SOHO MEWS

PAMELA GONZALES

OSSWALD

AVAILABLE

IL MULINO PRIME

HERVE LEGER

STUART MOORE

JAMALI GALLERY

M0851

E

PETER LIK GALLERY

CROWN FINE ART

SEE EYEWEAR

ALEX & ANI

SCAVOLINI KITCHENS

FRANKLIN BOWLES

BIRCHBOX

SANCTUARY T

KRISTEN FARRELL

HOGAR DULCE HOGAR NOVECENTO GREENE STREET VACANT

GOES AROUND VACANT WHAT COMES AROUND

VACANT

BULBA KORCHMA TARAS SOHO GEM CUPPING ROOM CAFE ANTHROPOLOGIE STATION PARIS HJ RALPH LAUREN RRL REISS VACANT

EILEEN FISHER VACANT GROUND SUPPORT WEST BROADWAY WEST

DKNY LEICA LUMAS AVEDA AESOP K-WAY AVITTO VACANT BENEFIT BOGNER G-SHOCK LADUREE TAKA TAKA CHOBANI LA PERLA PANDORA BONPOINT AVAILABLE AVAILABLE AVAILABLE AVAILABLE SCRAP YARD PARACELSO M MISSONI PRIVE SALON SPORT MAX MOLESKINE STARBUCKS DIESEL KIDS PIERO GUIDI MAX STUDIO POP YOGURT KEITO SHOES JUST CAVALLI ERNO LASZLO VILEBREQUIN HAPPY SOCKS ROBERT MARC OLIVER PEOPLES POP-UP STORE LENSCRAFTERS DUNKIN DONUTS AXELLE GALLERY GALLERY CENTER ACUSTOM APPAREL PORTOFINO SUN FRENCH CORNER TREASURE & BOND JF REY OPTICIANS SOHO GRAND HOTEL EMPORIO ARMANI TO BE DSQUARED2 SEASONAL WHISPERS NORDSTROM CONCEPT CIPRIANI DOWNTOWN BILLIONAIRE BOYS CLUB DTR MODERN GALLERIES FELIX RESTAURANT AND BAR SEVEN FOR ALL MANKIND SOHO to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates without notice. We or withdrawal conditions, prior sale, lease or financing rental or other to the possibility of errors, omissions, change of price, and your tax and legal advisors should conduct your own investigation of the property and transaction. You and they may not represent current or future performance of the property. for example only, We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject obtained the information above from sources we believe to be reliable. However, We

0% 0% 0.87% 1.83% 0.94% -1.48% -2.76% -3.65% -1.75% -2.29% -0.90% w % Change © 2014, CBRE, Inc. ay sa ay $326 $278 $807 $383 $846 $355 $280 $3,500 $1,693 $1,086 $2,250 Q1 2014 w verage Asking Rent A Source: CBRE Retail Research Group, Q2 2014. since Q2 2013 t st the large year- average over-year asking rent increase,rising 22% more than n wn nto Dow Broad 1.71% 5.10% 8.94% 7.56% -3.79% -6.76% -5.19% 14.75% 17.97% 22.03% -22.30% % Change $408 $255 $358 $794 $366 $227 $690 $3,050 $1,640 $1,109 $2,413 Q2 2013 verage Asking Rent A $317 $268 $390 $854 $347 $277 $814 $3,500 $1,668 $1,067 $2,250 Q2 2014 verage Asking Rent A Downtown Broadway saw the largest Broadway saw the Downtown rent asking average year-over-year Q2rising by 22.03% since increase, rents on average asking 2013. Though by 0.9%, Broadway decreased Downtown throughout therents varied significantly $100 per sq. ft. starting around corridor, $500 per sq. ft.and going as high as Center, Transit Street near the Fulton and Brookfield Place. Center Trade World an increaseHerald Square experienced Though the latestof 18% since Q2 2013. increase has been quarter-over-quarter prices formodest, the high transaction locations, inthe H&M and Swatch of product in theaddition to a surplus Herald Square submarket, finds landlords continuing to be bullish on retail pricing within the corridor. venue venues venues venue venue venue venue venue Parameters Fifth A 49th to 59th Streets Broadway 72nd to 86th Streets Third A 60th to 72nd Streets Madison A 57th to 72nd Streets Fifth A 42nd to 49th Streets Broadway and Seventh A 42nd to 47th Streets Broadway Street to Chambers Battery Park Fifth A 14th to 23rd Streets Broadway Houston to Broome Streets 14th Street Ninth to West End A 34th Street Fifth to Seventh A venue

imes Square Average Asking Rent for Major Retail Corridors - Q2 2014 (North to South)* Corridors for Major Retail Asking Rent Figure 3: Average Neighborhood Midtown Upper West Side Upper East Side Upper Madison A Midtown T Downtown Flatiron Soho Meatpacking District

Herald Square s Corridor jor Retail Ma retail corridors 11 of Manhattan’s Four decreases year-over-year experienced rent during Q2 2014. in asking Side was on the Upper West Broadway by significant, dropping the most 2013 average. 22.30% from its Q2 of numerous spaces This was the result rezoning the area’s being leased, and of bank tenants, to limit the number higher rents. which typically pay numbers in Quarter-over-quarter Avenue between 49th Midtown on Fifth Square Times and 59th streets and while rents in remained unchanged, continued to SoHo on Broadway steadily tick upwards, indicating a consistent demand for the most sought- after retail space. *Based on ground-floor only; not inclusive of subleases

Q2 2014 Manhattan Retail | MarketView 4 , we © 2014, CBRE, Inc.

New York, NY 10017 NY New York, Meghan Lori Analyst Research Retail Brokerage Services CBRE Avenue, 19th Floor 200 Park t: +1 212 984 6685 e: [email protected]

have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and have not verified it and make no guarantee, warranty or representation about it. It is your responsibility and all rights to the material are reserved and cannot be completeness. This information is presented exclusively for use by CBRE clients and professionals reproduced without prior written permission of the CBRE Global Chief Economist. Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy Information contained herein, including projections, has been obtained from sources believed Disclaimer Additional U.S. research produced by Global Research and Consulting can be found at www.cbre.com.us/research. research produced by Global Research Additional U.S. esearch and Consulting R Global and Consulting – a which forms part of CBRE Global Research Team Research This report was prepared by the CBRE U.S. real estate market research, econometric network of preeminent researchers and consultants who collaborate to provide the globe. forecasting and consulting solutions to real estate investors and occupiers around Credit: Stockelements/Shutterstock.com. W CBRE FOLLO Leah Hyman Analyst Research Retail Brokerage Services CBRE Avenue, 19th Floor 200 Park For more information about this Manhattan Retail MarketView, please contact: please MarketView, Retail For more information about this Manhattan 10017 NY New York, t: +1 212 656 0518 e: [email protected] contacts

Q2 2014 Manhattan Retail | MarketView 5