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MANHATTAN RETAIL SPACE
We’re not going to sugarcoat this. Manhattan retail space is expensive. Once you finally find a store in New York City that you can operate in, count on shelling out a great deal of rent. Once you’re certain that people really, really want to buy what you’re selling, here’s what you need to know to brace yourself for leasing New York City retail space:
Because retailers want to entice customers with the immediate sight of their wares, retail space is generally located on the ground floor or lower level of commercial buildings. Some landlords consider the 2nd and 3rd floors retail space because the tenant has windows facing the street and can install signage that grabs as much attention as (if not more than) street-level signs. The more conventional retail space is ground space, though, which in most instances comes with some basement space.
Retail/store space generally has very low loss factors which generally range from 3-10%. Manhattan retail space is generally offered in “as is” condition with no landlord work, but landlords often consider offering a cash contribution in the form of discounted rent to sweeten the deal.
Manhattan Retail Featured Properties
Location, Location, Location
The price for retail stores is driven strictly by the location. Manhattan retail rental rates vary from $75.00 per square foot all the way up to $1,500. The higher end of that range is pretty much reserved for ground floor space along the ”Gold Coast” located from 50th Street up to 62nd Street, and from Madison to Fifth Avenue. Rents in this highly desirable area start at $600 per square foot. Super swank retailers such as Cartier, Barneys, Hermes, Bergdorf Goodman, Fortunoff and Dolce and Gabbana have stores on the Gold Coast.
So Little Supply, So Much Demand for Stores in Manhattan
Since there is a limited supply of Manhattan retail space, acquiring it can feel a bit like a lopsided round of speed-dating—fiercely competitive. Most store spaces receive multiple offers from prospective tenants. The result is that owners of retail space can afford to be picky about who they lease to. For example, some landlords do not allow the use of their retail space for restaurants or cooking—too messy a business in more ways than one.
When you sit down to select the parameters for your search for retail space, think about your monthly budget, the square footage that your require, the neighborhoods appropriate for your property search as well as the lease term you are comfortable with. Don’t forget to budget for construction as landlords usually do not build out a store for tenants.
It’s Who You Know
Several years of experience dealing in New York City commercial retail and office space, we are well connected and know how to leverage our relationships with landlords to help your business. If you’re looking for retail space but don’t know how to go about finding the right match, contact Alan Rosinsky at (212) 447-5403, Principal Broker of Metro Manhattan Office Space, Inc.