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NEW YORK Cushman & Wakefield Q4 19 Global Cities Retail Guide NEW YORK Cushman & Wakefield Q4 19 Global Cities Retail Guide Cushman & Wakefield | New York | 2020 0 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 fourth quarter of 2019, gaining 19,900 jobs. Tourism, a critical driver of retail activity, also remained strong as a record 66.9 million tourists visited New York City in 2019—up from 65.2 million travelers in 2018. Continued record tourism, combined with rising employment and increased year-over-year (YOY) household income, supports increased shopping activity and may curtail NEW YORK store closures. According to Moody’s Analytics, Manhattan retail sales increased by 6.3% in 2019 and are projected to grow 2.9% in 2020. OVERVIEW Cushman & Wakefield | New York | 2020 1 NEW YORK KEY RETAIL STREETS & AREAS TIMES SQUARE MADISON AVENUE Times Square, often referred to as the "Crossroads of the Madison Avenue is New York City's luxury submarket, World," is appropriately nicknamed because of its position and has long been the home of haute couture domestic in the intersection where Broadway and Seventh Avenue and international fashion retailers and exclusive jewelers. intersect at West 45th Street running from West 42nd These retailers demand the best top tier location Street to West 47th Street, and is also known as the “Bow Manhattan has to offer. The luxury strip of Madison Tie”. This prime Midtown location offers unparalleled retail Avenue runs from East 57th Street north into the East exposure and signage opportunities, as it is the most 70’s. For this reason, as well as the prestige associated highly trafficked location in New York City. An astonishing with the name "Madison Avenue", this corridor continues 380,000 people walk through Times Square every day, to be desired by local and international retailers and new 170,000 of which work in the area. And below ground, luxury brands. Madison Avenue is fueled by brand there are 12 subway lines servicing more than 65 million recognition high-end boutiques searching for the most riders annually. successful upscale location where prominence is assured. LOWER MANHATTAN FLATIRON/UNION SQUARE WEST Lower Manhattan, located south of Vesey Street, is often The Flatiron district, in Midtown South, spans the portion referred to as "Downtown" or "The Financial District", or of Fifth Avenue between 14th and 23rd Streets, Broadway “FIDI”, and has transformed from a 9-to-5 work locality from East 17th Street to East 23rd Street, and Union into a new and vibrant residential neighborhood and Square West from East 14th to East 17th Streets, and is tourist destination. Lower Manhattan has rapidly changed home to a variety of retailers, including apparel, home- into a globally-recognized business location with robust furnishing stores, gyms, and restaurants. Flatiron is fueled energy. The expanded hotel and residential population, by affluent area residents, proximity to the New School combined with continued retail leasing opportunities at the and Union Square Park, and by this neighborhood's high Westfield/World Trade Center development, South Street desirability within the growing tech and new media Seaport, Fulton Center, and Brookfield Place has created industries which seek to secure trendy office space. an exciting "buzz" in Lower Manhattan's retail leasing scene. For the better part of last decade, this Downtown market has been undergoing a renaissance with revitalization of its premier shopping hubs. Cushman & Wakefield | New York | 2020 2 NEW YORK KEY RETAIL STREETS & AREAS FIFTH AVENUE SOHO The Fifth Avenue corridor is New York City's premier retail SoHo, which stands for “South of Houston” was once corridor and is home to numerous high-end fashion famous as a destination for artists and galleries. Today, tenants, internationally recognized retailers, and global SoHo is one of New York City’s most coveted Midtown brands. More recently, athletic wear tenants such as Nike South shopping destinations. Its boundaries include the and Under Armour have opened and plan to open on area south of West Houston Street to Canal Street, Upper Fifth Avenue (49th-60th streets). This upscale Broadway to West Broadway. It is the center of the Cast Midtown submarket is globally recognized, highly Iron Historic district and has the largest population of cast patronized by tourists, and driven by the dense office iron buildings found in the world. Retailers leverage market population. This corridor commands the highest SoHo’s distinctive storefronts, hip vibe, and pedestrian- asking rents in Manhattan and nationally. As of late, friendly environment to elevate merchandise sales and Upper Fifth Avenue leasing activity has stalled with only establish unique, highly stylized stores. As a result, many one transaction with the majority of activity on Lower Fifth of the world’s most recognized retail brands see this Avenue (42nd-49th Streets) where six new retail deals were Midtown South submarket as the ideal showcase. announced in 2019. MEATPACKING HERALD SQUARE/WEST 34TH STREET The Meatpacking district was originally home to butcher The Herald Square/West 34th Street (Fifth Avenue-Seventh shops and meatpacking plants, and over the past few Avenue) retail corridor falls into the Herald Square/Penn decades has evolved into one of the most popular tourist Plaza submarket of Midtown Manhattan. It houses two of the destinations for shopping, nightlife, and dining. Its borders most iconic landmarks in New York City— Macy’s department store at Broadway and West 34th Street opposite run from Gansevoort Street, north to West 16th Street, Herald Square Park, and the Empire State Building at 350 Hudson Street/Ninth Avenue to West Street. Once Fifth Avenue. West 34th Street is a shopping destination for considered among the grittiest of Manhattan's daytime workers and tourists and is also populated by neighborhoods, this submarket now welcomes graphic commuters traveling to Penn Station at Seventh Avenue. designers, fashion design houses, museums, hotels, luxury This stretch of retail is the home to many flagship stores of boutiques, and several of Manhattan's finest restaurants and mainstream retailers, including Sephora, Footlocker, and trendy night clubs. This Midtown South neighborhood has Victoria’s Secret. Prominent additions to Herald Square’s evolved into a high-end shopping destination driven by the tenant roster are Midtown’s first Target department store and success of the revitalized High Line Park (which attracts five eCommerce giant Amazon’s second bricks-and-mortar million tourists annually), the massive multi-tenanted food bookstore in Manhattan. hall/office building/production studio, Chelsea Market complex on Ninth Avenue, and the new Whitney Museum of American Art on West 13th Street. Cushman & Wakefield | New York | 2020 3 NEW YORK MARKET OVERVIEW KEY AREAS / CONSUMER MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT RANGE OF STREETS/ PROFILE FOR UNIT OF UNIT SIZES SHOPPING CENTERS 2,000 SQFT Sephora, Forever 21, American Eagle, Swatch, Pele Soccer, JD Sports, Krispy Sunglass Hut, M&M’s World, H&M, Levi’s, U.S. Polo Kreme, Soarin’ by Discovery, Taco Tourists, local Association, Express, Skechers, Old Navy, The Gap, Bell Cantina Times Square Bowtie business $1,750 PSF 866-8,641 SF T-Mobile, Loft, Arabian Oud, Swarovski, Line Friends, density Steve Madden, McDonald’s, Hard Rock Café, Olive Garden, Modell’s, Applebee’s Hermes, Tiffany & Co., Century 21, Canali, TJ Maxx, UNTUCKit, Oliver Peoples, Ann Taylor, The Gap, Cipriani, Abercrombie & Fitch, Suitsupply, William Barthman, H&R Tourists, local Superdry, Salvatore Ferragamo, Urban Outfitters, Block, Rebag, Madewell, Innisfree, business Ermenegildo Zenga, Zara, Bonobos, Sunglass Hut, Convene, City MD, Five Iron Golf, Life Lower Manhattan $125-$300 PSF 250-24,487 SF density, local Tom Ford, Anthropologie, City MD, Apple, Whole Time Fitness, Jennifer Furniture, shoppers Foods, Marshalls, Capital One, Indochino, Crunch Blo Blo Dry Bar, OrangeTheory Fitness, Club Monaco, Lego, Equinox, COS, Invicta, Fitness, NY Sports Club, Paper H&M, 10 Corso Como, Equinox Source, Rebagg, Hugo Boss Hermes, Ralph Lauren, Chanel, Giorgio Armani, Chopard, Alexander McQueen, Jaeger LeCoultre, Deciem, Ralph & Russo, The Baccarat, Bottega Veneta, Jimmy Choo, Tod’s, Paul Westside, Nili Lotan, Balenciaga, & Shark, A Lange & Sohne, Santoni, Madewell, Missoni, Sergio Rossi, Mark Cross, Madison Avenue Tourists, local Givenchy, Breitling, Yves Salomon, Elie Saab, Monique Lhuillier, Balmain, Byredo, 7 $825-$1,100 PSF 667-4,798 SF (E. 57th-E.72nd Sts.) shoppers Giuseppe Zanotti, Moncler, Georg Jensen, Tom Ford, For All Mankind, Manolo Blahnik, Vhernier, Celine, FP Journe, Wolford, Montblanc, Morgane Le Faye, Santoni, Traum Akris, Fendi, Canali, Montblanc, Schutz, Brunello Safe, La Fonde Cucinelli, Givenchy, Loro Piana, Oliver Peoples Cushman & Wakefield | New York | 2020 4 NEW YORK MARKET OVERVIEW KEY AREAS /
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