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, the New York metropolitan area is the largest in the United States. Over the last several years, New York has become a magnet for the millennial generation to work, live and play. Today, millennials account for 31.1% of New York City’s population, a far share higher than the 27.5% this age group represents of the national total U.S. population. Businesses, such as information technology and media start-ups, seeking to tap into the millennial generation, are growing in New York, leading to strong, rapid growth in jobs. Overall, New York City added 58,600 jobs in 2016. Over the past year, solid job growth continued to fuel income as the NYC medium income is projected to increase 3.4% throughout 2017.
This job growth is boosting income throughout the region and supporting strong growth in retail sales. According to Moody’s Analytics, New York City retail sales increased an estimated 3.0% from 2016. Tourism remains a major driver of retail activity. In 2016 New York City had 60.3 million visitors, up from 59.7 million tourists in 2015. The combination of more than 20 million local area residents and more than 60 million visitors means retail stores in New York City have a potential audience of more than 80 million people. It is no wonder retailers want to be here.
TIMES SQUARETimes Square, often referred to as the "Crossroads of the World," is appropriately nicknamed because of the intersection where Broadway and Seventh Avenue intersect from West 42nd Street to West 47th Street, also known as the “BowTie”. This location offers unparalleled retail exposure and signage opportunities as it is the most highly trafficked location in New York City. An astonishing 440,000 people walk through Times Square on a busy day.
LOWER MANHATTANLower Manhattan, often referred to as "Downtown" or "The Financial District", has transformed from a 9-to-5 work locality into a residential neighborhood and tourist destination. The burgeoning hotel and residential population, combined with the continued leasing success of the Westfield/Word 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 jewelry and haute couture international fashion retailers. For this reason, as well as the prestige associated with the name "Madison Avenue", this corridor continues to be desired by overseas retailers. Madison Avenue is fueled by brand recognition boutiques searching for the most successful upscale location.
FLATIRON DISTRICT/UNION SQUAREThe Flatiron district, in Midtown South, spans the portion of Fifth Avenue between 14th Street and 23rd Street, Broadway- from East 17th Street to East 23rd Street, and Union Square West from East 14th Street to East 17th Street, and is home to a variety of retailers, including apparel, home-furnishing stores, and restaurants. Flatiron is fueled by affluent area residents, proximity to the New School and Union Square, and by this neighborhood's sky-high desirability within the growing tech and new media industries which seek to secure trendy office space.
FIFTH AVENUEThe Fifth Avenue corridor is New York City's premier retail and office neighborhood and his home to numerous high-end fashion tenants and internationally recognized retailers and global brands. This upscale retail submarket, is driven by the dense office market and consistently strong tourism, and continues to outperform quarter over quarter and commands the highest asking retail rents in Manhattan, especially in the upper Fifth Avenue stretch between 49th Streets and 60th Streets. This corridor commands the highest asking retail rents in the world.
MEATPACKINGThe Meatpacking district was historically home to butcher shops and meatpacking plants. Once considered among the grittiest of Manhattan's neighborhoods, this submarket now welcomes graphic designers, fashion design houses, museums, hotels, luxury boutiques, and many 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 High Line Park, the Chelsea Market, and the recently completed Whitney Museum.
SOHOSoHo, the area south of West Houston Street to Canal Street, Broadway to West Broadway, is another statement retail submarket and continues to be a hot dining 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 submarkets in Midtown South, Manhattan.
|KEY AREAS / STREETS||CONSUMER PROFILE||MAJOR RETAILERS PRESENT||NEW ENTRANTS||TYPICAL ASKING RENT FOR UNIT OF 2,000SQFT||RANGE OF UNIT SIZES|
|Fifth Avenue: 42nd-49th Street||Tourists, local business density, local shoppers||H&M, Barnes & Noble, Sephora, American Girl, NBA Store, Zara, Guess, & Other Stories, Topshop, Oakley, Tommy Bahama, Karen Millen, Ted Baker, Skechers, Urban Outfitters, Best Buy||Adidas, G-Star Raw, Asics, The North Face, Walgreens, COS||$950 PSF||1,870-11,000 SF|
|Fifth Avenue: 49th-60th Street||Tourists, local business density, local shoppers||Saks Fifth Avenue, Bergdorf Goodman, Salvatore Ferragamo, Apple, Tiffany, Harry Winston, Gucci, Ermenegildo Zegna, Cartier, Prada, Bulgari, Armani, Zara, Coach, Versace, Uniqlo, Gap, Henri Bendel, Furla, Blancpain, MAC, Valentino, Ralph Lauren, Dolce & Gabbana, Microsoft||Breguet, Omega, Swatch, Wempe, Longchamp, Dyson, Victoria’s Secret, Nike, Under Armour, Longchamp||$3,000 PSF||525-7,300 SF|
|Madison Avenue||Tourists, local shoppers||Hermes, Tom Ford, 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, Philip Plein, Apple Store, Jitrois, Louis Leeham, Madewell, LK Bennett, UGG, Givenchy, Nespresso||Breitling, Yves Salomon, Elie Saab, Giuseppe Zanotti, Moynat, Moncler, Lanvin, Edie Parker, Paule Ka, Georg Jensen, DeBeers, Tom Ford, Vhernier USA||$1,175 PSF||450-9,028 SF|
|SoHo||Tourists, local shoppers||Topshop, Madewell, Stella McCartney, Alexander Wang, J. Crew, MAC, Patagonia, Coach, L’Occitane, Bloomingdale’s, Victoria’s Secret, Prada, Moschino, Aldo, Uniqlo, Under Armour, Armani A/X, Sunglass Hut, True Religion, Hollister, Birchbox, & Other Stories, Maud Frizon, Rebecca Taylor, Proenza Schouler, Dolce & Gabbana, Balenciaga, Tory Burch, The Kooples, Byredo, Balmain||Morgane Le Fay, Tomorrowland, Versace, Arc’teryx, Giggle, Athleta, Adidas, Canada Goose, Vera Bradley, Tous, Frame Denim, Free People, Linda Farrow, RM Williams, Dolce Vita, Pinko, Eight Senses, Bio, Monica Vinader, Follain, Luana Italy, Vivienne Hu, Djula||$155-$1,000 PSF||300-10,251 SF|
|Times Square||Tourists, local shoppers||Sephora, Forever 21, American Eagle, Aeropostale, Swatch, Sunglass Hut, M&M’s World, H&M, Levi’s, US Polo Assoc., Express, Skechers, Old Navy, The Gap, T-Mobile, MAC||Laline, National Geographic, Arabian Oud, CVS||$2,350 PSF||1,650-25,147 SF|
|Meatpacking||Tourists, local shoppers||Zadig & Voltaire, Intermix, Diane von Furstenburg, Apple, La Perla, Tory Burch, Vince, Christian Louboutin, Bagatelle, Theory, UGG, Kiehls, Bond No. 9, The Kooples, Zimmermann, Niquea.d, Carlo Pazolini, Warby Parker, Restoration Hardware||Madewell, Parfums de Marly, Intermix, Tesla, Maiyet||$175-$375 PSF||578-22,300 SF|
|Flatiron||Local shoppers||Eataly, Restoration Hardware, H&M, Banana Republic, Anthropologie, Sephora, Victoria’s Secret, Eileen Fisher, Club Monaco, Cole Haan, Aritzia, Eddie Bauer, Sperry Topsider, Tory Burch Sport, lululemon, Bonobos, Sweaty Betty||Papersource, Ethan Allen, Footlocker, Paul Smith, NYX Cosmetics, North Sails Apparel, Lou & Grey, Frye Company, Staples, Verizon Wireless, Rent the Runway, Pottery Barn||$300-$550 PSF||1,1,82-13,000 SF|
|Lower Manhattan||Tourists, local business density, local shoppers||Hermes, Tiffany & Co., Century 21, Canali, TJ Maxx, Thomas Pink, Tumi Luggage, Ann Taylor, The Gap, Cipriani, Abercrombie & Fitch, Superdry, Salvatore Ferragamo, Urban Outfitters, Ermenegildo Zenga, Zara, MAC, Calypso St. Barth, Bonobos, Sunglass Hut, LK Bennett, Tom Ford||Anthropologie, 18/8 Men’s Salon, City MD, Apple, Whole Foods, Marshall’s, Capital One||$300 PSF||500-6,417 SF|
Data as of December 2016
New York City continues to be the world’s premier dining city with 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 Marea, Jean Georges, Eleven Madison Park, and Per Se.
Bolstered by the continued success and expansion of Shake Shack, burger concepts continue to grow. The competition for New York City’s best burger remains a heated one. Behind that, we see Luke’s Lobster and Burger & Lobster entering our market. Steakhouses continue to thrive here also as Wolfgang’s expanded in Midtown Manhattan.
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 newest entrants include London’s Duck & Waffle, Asian quick food Momofuko. However, the latest food craze comes from Hawaii as numerous Poke, fish-salad concepts branch out into Manhattan.
Food Halls are now driving the next wave of growth in the New York City eating arena. This hot trend of dining hall choice eating is expanding in an otherwise challenging environment.
Manhattan is saturated with new food establishments catering to the busy office lunch crowd and continues to handle the flow of new concepts. Quick Serve Restaurants (QSR)’s are aggressively expanding in Manhattan and flowing to the outer boroughs. Salad concepts such as Chop’t, Fresh & Co., Dr Smood, and Sweetgreen are flourishing. As of late, some juice chains such as Jamba Juice have fallen off the radar. However, new player, Joe & the Juice is expanding rapidly.
|KEY AREAS||CONSUMER PROFILE||FOOD & BEVERAGE OPERATORS INCLUDING||ASKING RENT FOR 3,500 SQFT UNIT|
|Midtown, Grand Central||Local business density, tourists||Toasties, Pret a Manger, The Palm Too, Cosi, Shake Shack, Schnippers Quality Kitchen, Between the Bread, Sushi Ginza Onodera, Fields Good Chicken, Dr Smood, Joe & the Juice, Sushiro, Pokateria||$300-$325 PSF|
|Plaza||Local residential population, business density||Ocean Prime, Marea, Le Bernardin, Jean Georges, 21 Club, Del Frisco's Grill, Quality Italian, Limani, Valbella, Fogo de Chao, BLT Steak, Little Beet, Dos Toros, Joe & The Juice, Maison Kayser, Fresh & Co, Le Pain Quotidien||$275-$1,000 PSF|
|Midtown West, Clinton||Local residential population and secondary retail||Meltshop, Ted's Montana, Carmines, Danji, Taboon, Pot Belly Sandwich, Chipotle, Per Se, Chic-fil-A, Pret a Manger, Le Pain Quotidien, Hama NY, Masa, Arby’s, Dig Inn, Wahlburgers, Fresh & Co. Urban Market, Maple, Meatball Shop, The Noodle Shop, Junior’s, Dig Inn, Maple, Bread & Butter||$112-$310 PSF|
|Flatiron, Meatpacking||Local residential population, business density||Valbella, Eataly, Shake Shack, Buddakan, Chelsea Market, Dos Caminos, Spice Market,The Standard Grill, Obika Mozzarella Bar, Dig Inn, Sweetgreen, Sugar Factory, Blue Water Grill, Tsurutontan, by Chloe, Shushirrito, Mallie Mustard, Yo! Sushi, Sugarfish, Burger & Lobster, Barn Joo||$220-$300 PSF|
|Upper East Side||Local residential population||Daniel, Crown, JG Melon, Shake Shack, Jersey Mike's, Luke's Lobster, Bareburger, Gregory's Coffee, Cousin's Diner, Helen Food, Mighty Quinn’s, Grain Bowl, Joe & the Juice, Muscle Maker Grill||$200-$275 PSF|
|Upper West Side||Local residential population||Meatball Shop, Parm, Spiga, Carmine's, Lenny's, Sweetgreen, Farinella Bakery, Sugar Factory, Crave Fish Bar, H & H Bagel, Panda Express, Sweetgreen, Two Bean Coffee, Panda Express||$150-$500 PSF|
|Lower Manhattan||Local residential population, business density, tourists||Melt Shop, Mighty Quinn's BBQ, Cipriani, Chop't, Capital Grille, Delmonicos, Bobby Vans, Morton's, Potbelly Sandwich, Eataly, Organic Avenue, Nobu, The Malt House, Oaxaca Taquera, Black Fox Coffee, Jersey Mikes, Smashburger, Hudson Eats, Birch Coffee, Café Grumpy, Verts Mediterranean Grill, Just Salad, Blue Bottle Coffee||$220- $336 PSF|
|SoHo, NoLita||Local 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||$185-$685 PSF|
Data as of December 2016