Italian luxury fashion house Prada has renewed its lease along the Fifth Avenue retail corridor.
Prada has maintained a 20,740-square-foot presence at 724 Fifth Avenue spanning four retail stories and one office floor since 1997. The early renewal will add 15 years to the life of the lease, extending it through 2028.
The fashion house was motivated to renew its lease early to secure its strategic and iconic location. The current lease did not have an extension option, noted Brett Herschenfeld, a senior vice president at SL Green and a broker on the transaction.
“Currently there is no space available north of Sachs and demand has never been stronger,” said Mr. Herschenfeld. “Not only do premium-brand retailers want to retain flagships there, but now there also is competition from mid-priced stores that feature high volume and low inventory.”
Several major tenants have inked deals along the corridor this year including Ralph Lauren taking 38,000 square feet at 711 Fifth Avenue, Valentino taking 20,000 square feet at 693 Fifth Avenue and Cartier temporarily moving its flagship to 767 Fifth Avenue as 653 Fifth Avenue undergoes renovation.
The corridor is known for fetching quadruple digit asking rents. A report published by CBRE earlier this year noted that asking rents have reached over $3,000 per square foot on average.
“This early renewal is another great example of the power of the SL Green and Jeff Sutton partnership,” said Mr. Herschenfeld. “Our collaboration controls some of the greatest and highest-grossing retail spaces in the world, with a tenant roster to match.”
SL Green sits well positioned in the real estate market with powerhouse tenants like Dolce & Gabbana, Armani, Abercrombie & Fitch, Juicy Couture, Godiva, and American Girl in its vast portfolio.