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 / CONSUMER MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT RANGE OF STREETS/SHOPPING PROFILE FOR UNIT OF UNIT SIZES CENTERS 2,000 SQFT

H&M, Sephora, Victoria’s Secret, Eileen Fisher, Title Boxing, Lovesac, Pergola, Club Monaco, Tory Burch Sport, lululemon, NYX Free People, Outdoor Voices, Cosmetics, Bonobos, Sweaty Betty, Paper Source, Sleep Number, Bulletin, The Well, Flatiron/ Local shoppers, Lou & Grey, Frye Company, Alo Yoga, UNTUCKit, Rumble Fitness, Camp (Buzz $168-$400 PSF 400-13,000 SF Union Square West local business The White Company, Theory, Flying Tiger, Feed), Union Square Play, Bandier, Filson, Doc Marten, Scotch & Soda, Kindbody, Brideside, Spacious, Madewell, Athleta, Gap, Zara, Equinox, Intermix, Godiva, LoveSac, Hey Dey, New Balance, Nike Warner Brothers Entertainment

H&M, Barnes & Noble, Sephora, NBA Store, Zara, Tourists, local Guess, & Other Stories, Oakley, Tommy Bahama, Fifth Avenue: business Ted Baker, Skechers, Urban Outfitters, Best Buy, L’Occitane en Provence, Puma, $700-$750 PSF 2,300-10,172 SF 42nd-49th Streets density, local Aldo, The North Face, Asics, Adidas, Walgreens, Laderach, Club Monacco, UGG shoppers COS, Calzedonia, Vans, Intimissimi, Aritzia, Timberland, Zara, Five Below, Sunglass Hut

Saks Fifth Avenue, Bergdorf Goodman, Salvatore Ferragamo, Tiffany & Co., Harry Winston, Gucci, Tourists, local Cartier, Prada, Bulgari, Armani, Coach, Versace, Fifth Avenue: business Under Armour, Delvaux, Uniqlo, Valentino, Dolce & Gabbana, Microsoft, $2,463-$3,500 PSF 900-9,000 SF 49th-60th Streets density, local Chocheng, Dior Longchamp, Dyson, Victoria’s Secret, Apple, shoppers Abercrombie & Fitch, Nike, St. John, Wempe, Mikimoto, Hublot, Louis Vuitton

Cushman & Wakefield | New York | 2020 5 NEW YORK MARKET OVERVIEW

KEY AREAS / CONSUMER MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RANGE OF STREETS/ PROFILE RENT FOR UNIT SIZES SHOPPING UNIT OF CENTERS 2,000 SQFT

Zadig & Voltaire, Intermix, Diane von Furstenburg, Apple, La Perla, Vince, Christian Louboutin, Theory, Kiehl’s, Bond No. 9, The Kooples, Zimmermann, Hermes, Marcus, Loro Piana, Vans, Med Men, Tourists, local Meatpacking Carlo Pazolini, Warby Parker, Restoration Hardware, Belstaff, WIX, Brunello Cucinelli, Frame Denim, $250-$500 PSF 806-22,300 SF shoppers Madewell, Parfums de Marly, Tesla, Maiyet, Fjallraven Sneakersnstuff (SNS), Hyundai/Genesis, Samsung, Trina Turk, Chrome Hearts

Stella McCartney, Alexander Wang, Patagonia, Coach, Bloomingdale’s, Victoria’s Secret, Prada, Calzedonia, Tom Dixon, Eleventy, Anine Bing, Moschino, Uniqlo, Under Armour, Sunglass Hut, Kotn, Schutz, Mansur Gavriel, Bruno Magli, & Other Stories, Maud Frizon, Rebecca Taylor, McKenzie Childs, Aquazzura, Bang & Olufsen, Proenza Schouler, Dolce & Gabbana, Balenciaga, The Face, One King’s Lane, Sunspel, PIQ, The Kooples, Byredo, Balmain, Morgane Le Fay, Mykita, Ben Sherman, Jack Vartanian, Grace Tomorrowland, Versace, Adidas, Canada Goose, Loves Lace, Redemption, Space in the Raw, Tourists, local Vera Bradley, Tous, Frame Denim, Free People, Gucci, Thursday Boot Company, Argent, SoHo $114-$900 PSF 200-13,677 SF shoppers Linda Farrow, RM Williams, Dolce Vita, Pinko, Eight Buscemi, lconeri, Poggenphol, Loewe, Senses, Monica Vinader, Follain, Vivienne Hu, Djula, Alexander McQueen, Rossignol, Gauran Shah, Dr. Marten’s, Amazon, Alo Yoga, Herno, Off White, Norrona, Moose Knuckles, Eloquii, Kenzo, Moncler, Saje, Faith Connexion, Brett Johnson, AuRate, L’Agence, Society Limonata, Tamara Sephora, Gentle Monster, Champion, Mango, Mellon, Nanushka, Lazaro, Mackage, Taft, Luca lululemon, Woolrich, Brandy Melville, Madewell, Faloni, Rails, Pandora, A Bathing Ape (BAPE), Anthom, Dreams on Air, Desigual, The North Face, Burrow Hugo Boss, Farm Rio

Cushman & Wakefield | New York | 2020 6 NEW YORK FOOD & BEVERAGE New York City continues to be the Following these trends, other food groups making the New York scene include donuts and pastry shops, chocolate world’s premier dining city, housing cafes, nuts & candy shops, and vegan-style ice cream restaurants representing a variety establishments. Chains including Krispy Kreme, Dunkin’, of price points, cultures, and palates and Paris Baguette have leased space in Manhattan for added eateries during 2019, all welcome additions. at every location. Crowd pleasing quick-serve Manhattan brands include Due to healthy economic performance, New York City’s expansions by: Pret A Manger, Chick-fil-A, by Chloe, Shake fine dining establishments continue to be busy every night Shack plus salad-concepts such as Chop’t, Just Salad, of the week, catering to the well-heeled gourmand. Some sweetgreen, Cava Grill, and DIG are all flourishing as DIG of these successful restaurants include Le Bernadin, Jean announced six new expansions during 2019. Georges, Eleven Madison Park, and Per Se. Food Halls continue to grow slowly in the Manhattan eating However, casual fare remains in the forefront. Some arena. In the past several years, this hot trend of dining hall, trends have halted, including the Japanese-based, stand- kiosk-type choice eating has expanded in the challenging up-and-eat concept, Ikinari Steak. This fast casual eatery New York City restaurant environment. Food Hall leader, rapidly expanded in Manhattan and has slowly closed Urbanspace announced two additional locations will be their doors despite its cult following. Additionally, the rise added to Midtown West in 2019. This trend exploded with and fall of the cupcake business has ceased and has the draw of food diversity and ethnic choices all under one been replaced by ice cream and gelato type fare. roof. As of late, one hot quick serve restaurant (QSR) that is in Manhattan is saturated with new food establishments the expansion mode with four new eateries announced catering to the busy office lunch crowd and continues to during 2019 is Taco Bell Cantina who is growing its New handle the flow of new meal concepts. Food users continue York footprint by serving shareable appetizers and as the primary retail space takers in 2019, up 57.6% year alcoholic beverages in it Cantina model, urban design over year, proving to be the prominent leasing industry in setting. Manhattan, and are testing the water in the outer boroughs New ethnic cuisines and international food boutiques as well. continue to find homes in New York City whether at the The latest meal trend in New York City is the arrival of the fine dining or casual end. Some of the newer entrants ghost kitchen. These kitchens are generally lower-grade include chef David Chang’s “Fuku”, serving casual lunch- retail spaces where “to-go” meals are prepared. Two ghost style chicken sandwiches. Sushi-type, quick serve kitchens, Kitopi, (with their first location in the Brooklyn Navy restaurants featuring raw fish poke originating in Hawaii, Yard), and Zuul have secured their places as food pioneers continue to expand. In Manhattan, coffee houses, bubble preparing take out meals behind the scenes as consumers tea, and juice establishments including Dr Smood and Joe place a website order and wait for the delivery. Partnered & The Juice, have slowed in their expansions while with restaurants where the food order originates, this new Japanese ramen noodles, dumplings, Mediterranean wave is an inevitable part of our expanding delivery meal grain bowls, and almost all salad concepts are growing. future.

Cushman & Wakefield | New York | 2020 . 7 NEW YORK FOOD & BEVERAGE MARKET OVERVIEW

KEY AREAS CONSUMER FOOD & BEVERAGE OPERATORS RENT FOR PROFILE INCLUDING 3,500 SQFT UNIT Pret A Manger, Cosi, Sushi Ginza Onodera, Fields Good Chicken, Dr Smood, Joe & The Juice, Poketeria, sweetgreen, Dill & Parsley, Local business Grand Central Blue Bottle Coffee, Cava Grill, Chick-fil-A, Ole & $262-$600 PSF density, tourists Steen, Sticky’s Finger Joint, Los Tacos No.1, Proper Food, DIG, Taco Dumbo, Just Salad, Little Collins, Black Fox Coffee, Inday

Ocean Prime, Marea, 21 Club, Quality Italian, Fogo de Chao, Dos Toros, Joe & The Juice, Maison Kayser, Le Pain Quotidien, Pret A Local residential Manger, Wagamama, Just Salad, Blue Bottle Plaza population, Coffee, Boucherie, Proper Food, Mighty Bowl, $245-$700 PSF business density Rue 57, Benoit, Michael’s, DIG, Tang Pavilion, Il Corso, The Polo Bar, Taco Dumbo, Le Bernardin, Pot Belly Sandwich, Chipotle, Bread & Butter Meltshop, Little Beat, Ted's Montana, Carmines, Chick-fil-A, Pret A Manger, Le Pain Quotidien, Arby’s, DIG, Fresh & Co., Bond 45, Meatball Local residential Shop, King of Kobe, Talad Wat, Taco Bell Midtown West population and Cantina, Poke Bowl, Apes & Peacocks, $130-$247PSF secondary retail Urbanspace, Cedric’s at The Shed, Shake Shack, Sugarfish, Just Baked, Paris Baguette, Black Iron Burger, Honeybrains, Made in NY Pizza, Taco Mahal, Dunkin’

Cushman & Wakefield | New York | 2020 8 NEW YORK FOOD & BEVERAGE MARKET OVERVIEW

KEY AREAS CONSUMER FOOD & BEVERAGE OPERATORS RENT FOR PROFILE INCLUDING 3,500 SQFT UNIT Eataly, Shake Shack, Buddakan, Spice Market, The Standard Grill, Catch, Obika Mozzarella Bar, DIG Local residential sweetgreen, Sugar Factory, Tsurutontan, by Chloe, Flatiron, population, Sugarfish, Burger & Lobster, Tender Greens, Chick- $85-$400 PSF Meatpacking business density fil-A, Ole & Steen, Teazzi Tea Shop, Bagatelle, La Cubana, Punch Bar, Godiva Café, Krispy Kreme, Nus-Et-Burger, Oiji, Ella Brasileria

Shake Shack, Luke's Lobster, Mighty Quinn’s BBQ, Joe & The Juice, sweetgreen, Baked by Melissa, Vivi Bubble Tea, Zavo Restaurant & Lounge, Oath Local residential Upper East Side Craft Pizza, Starbucks, Taco Bell, Levain Bakery, $98-$225 PSF population BLT Prime, Double Twister Ice Cream, Paris Baguette, Nuts Factory, Jacques Torres Chocolate, The Little Beet, BLT Prime, Anita Gelato, Lenwich

Meatball Shop, Carmine's, Lenny's, sweetgreen, Crave Fishbar, Panda Express, DIG, Cipriani Food Hall, Shake Shack, Viand Café, Blue Bottle Coffee, Local residential Oath Pizza, Joe & The Juice, Holy Schnitzel, Big Upper West Side $100-$166 PSF population Gay Ice Cream, Café Metro, Bareburger, Calle Ocho, Vanessa’s Dumplings, Boucherie, Irving Farm Coffee, Kee’s Chocolates, Seven Hills Grill, About Coffee, Au Jus, Junmen Ramen

Cushman & Wakefield | New York | 2020 9 NEW YORK FOOD & BEVERAGE MARKET OVERVIEW

KEY AREAS CONSUMER FOOD & BEVERAGE OPERATORS RENT FOR PROFILE INCLUDING 3,500 SQFT UNIT Mighty Quinn's BBQ, Cipriani, Chop't, Capital Grille, Delmonico’s, Bobby Van’s Steakhouse, Morton's, Potbelly Sandwich, Eataly, The Malt House, Oaxaca Taqueria, Black Fox Coffee, Smashburger, Hudson Local residential Eats Food Court, Birch Coffee, Just Salad, Blue population, Lower Manhattan Bottle Coffee, Joe & The Juice, Chick fil-A, Dos $98-$400 PSF business density, Toros, Wasabi Sushi & Bento, Black Seed Bagel, tourists Fuku, Blue Ribbon Sushi, DIG, Le District Market Place, Little Beat, Cava Grill, Taco Bell Cantina, Dunkin, & Pizza, Five Guys, Dill & Parsley, Just Baked, Taco Dumbo

The Dutch, Parm, Bareburger, Lure Fishbar, Chef’s Club by Food & Wine, Think Coffee, Coco Pazzo, Cava Grill, Taco Dumbo, DIG, Sugarfish, Bluestone Local residential Lane, Zooba, Mister French, Café Gitane, Arabica SoHo, NoLita population, Coffee, Bondi Sushi, Citizen Café, Chop’t, $100-$350 PSF tourists Starbucks, Neuhaus Chocolates, Flippers, Odd Fellows Ice Cream, Van Leeuwen Ice Cream, Gran Tivoli, Yakinku Futago, The Egg Shop, Balthazar

Cushman & Wakefield | New York | 2020 10 BARRIE SCARDINA Head of Retail, Americas 1290 Avenue of the Americas New York, NY 10104, USA Tel: +1 212 841 7649 Mob: +1 201 394 4616 [email protected]

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. © 2020 Cushman & Wakefield. All rights reserved.