Discount fashion retailer Forever 21 has signed a lease for a 15,000-square-foot space for the upcoming Mall at Bay Plaza in the North Bronx, the shopping center’s developer, Prestige Properties, announced Thursday.
The Los Angeles-based chain will move in alongside stores like Victoria Secret, H&M and anchor department stores Macy’s and JC Penney in the 780,000-square-foot retail development slated to open Aug. 14.
National and international retailers until recently may have been commitment-phobes when it came to opening stores in Brooklyn, but that fear has been nearly quelled as mainstream chains like Whole Foods, J.Crew and H&M establish presences in the borough. And now that the big boys of retail are joining creative entrepreneurs, international and national brands have grown increasingly comfortable bypassing Manhattan and breaking into the New York City market via Brooklyn, especially Williamsburg.
Take the London-based record store Rough Trade, which since November has sold albums, served food and drinks and hosted concerts and exhibitions to crowds at Rough Trade NYC, at 64 North Ninth Street in Williamsburg. And then there’s European luxury kitchen goods company Cucina & Tavola, which recently opened its first New York City store at Williamsburg’s 235 Grand Street. In addition, Urban Outfitters’ concept store, Space Ninety 8, debuted in April at 98 North Sixth Street in the same neighborhood.
H&M’s sister label, & Other Stories, has signed a 10,915-square-foot lease at 575 Broadway. The Soho address will house the retailer’s first location in the United States and eighth worldwide.
The space carved out for & Other Stories is split between 7,215 square feet on the ground floor and 2,750 square feet on the lower level. The retailer expects to open for business at 575 Broadway later this year.
“If I could knock this wall down I would,” said Peter Hennessy, pointing through a glass enclosure that separates his office from a row of open workstations within the 42nd floor of Cassidy Turley’s 277 Park Avenue offices.
Mr. Hennessy, the tristate president at the firm, will likely get his wish if Cassidy Turley continues to literally and figuratively break down the barriers that once separated its business lines by expanding the consulting practice that he and Richard Bernstein, the firm’s executive vice chairman and principal, said is crucial to the company’s future.
More than a decade ago, with just 30,000 people living south of Chambers Street and the neighborhood largely silent at night and on the weekends, high-end, luxury retail in lower Manhattan was at best a pipedream and at worst a failed enterprise.
Today, with some $20 billion being spent on new construction between the upper stretches of Battery Park City and Broadway, the residential community has doubled to 60,000 and continues to grow. That affluent community of residents, not to mention increased tourist traffic, has upped the demand for luxury retail.
Burberry, Hermès, Ferragamo, Michael Kors and Zegna are some of the luxury names to have signed on at Brookfield Place, while J. Lindeberg and Tory Burch head the list of names rumored to be in talks for space at Westfield’s World Trade Center retail corridor.
Having been occupied by smaller-scale retailers for nearly 40 years, space at 585 Fifth Avenue is back on the market with more than 6,000 square feet available across the basement, ground, second and third floors.
A smaller building, 585 Fifth Avenue, presents a unique opportunity for retailers looking for a presence on one of New York’s most prominent shopping corridors. With flexible ownership, potential tenants will have plenty of opportunity to place their own mark on the area, and with Karen Millen and H&M set to appear on the same block, the property will benefit from tremendous foot traffic.
Perfectly suited for apparel, shoe, cosmetic and jewelry retailers, the space at 585 Fifth Avenue is asking $2.25 million per year in rent. “One block north, [rent] doubles, yet you are still pulling in the same customers—this is actually a bargain,” said Joseph Isa of Winick, who is marketing the space. Mr. Isa spoke with The Commercial Observer last week about ownership’s flexibility and the unique opportunities available to tenants.
Everywhere a Sign
H&M’s largest store in the world will open in Herald Center next fall after the retailer signed a 25-year lease for 63,000 square feet across four floors of the JEMB Realty property, the landlord’s broker announced today.
“H&M’s newest and greatest commitment to Herald Square is the next level in this retail submarket becoming one of the premier shopping destinations in New York City,” said Susan Kurland, executive vice present of retail services at CBRE, in a prepared statement. “JEMB Realty envisioned a premier retail flagship at Herald Center, creating an unmatched branding opportunity in the heart of Herald Square.”
H&M is prepping to emblazon its logo atop Durst Organization‘s 4 Times Square, The Wall Street Journal reported.
The ad, to be completed later this year, will accompany the 42,500-square-foot H&M store that will open at the 48-story tower’s base, where it signed a lease for a new store and the rooftop signage in October.
The Read More
Average asking rent for the Fifth Avenue retail corridor has crossed over $3,000 per square foot, the highest in New York City, according to CBRE’s second quarter Manhattan retail report. The increase represents the first time a Manhattan retail corridor has registered average asking rent north of $3,000.
“There was a time when $600 per square foot was considered outrageous on Fifth Avenue,” Richard Hodos, executive vice president of the CBRE Retail Group, told The Commercial Observer. “Putting inflation aside, it speaks to the fact that New York is a world class city.”
A 41,000-square-foot Nordstrom Rack is slated to open at United American Land’s 505 Fulton Street in spring 2014.
“We want to be in the top locations across the country, so this spot at the heart of downtown Brooklyn is big for us,” said Geevy Thomas, president of Nordstrom Rack, in a prepared statement. “We are thrilled to become back of this exciting community at a historic location, and we intend to make the most of the opportunity to serve customers and give them a reason to shop the Rack.”
About 200 retail real estate specialists gathered at 101 Park Avenue’s 101 Club last Tuesday for the Real Estate Board of New York’s 15th annual Retail Deal of the Year Awards cocktail party.
Brokers flocked to a bountiful buffet and an open bar with generous pours. In a lonely corner, an ignored PowerPoint presentation summarized the nominees. Here’s what went down as the assembled waited to hear which of the nine submitted transactions would take home the evening’s two big honors.
One day in the late 1980s, three Brooklyn brothers in their teens—Isaac, Haim and Richard Chera—followed their grandfather, Isaac, and their father, Stanley, on a trip to Manhattan. While not in school, the brothers would spend much of their spare time in the Fulton Street children’s clothing store that their grandfather had opened in 1948, in a space formerly occupied by a hat store, Suzette Millinery Shop. At the time, lacking the money to replace the previous banner, Isaac Chera simply tweaked it, naming his business Suzette Kiddie Store. Only later, after having expanded to several other stores, did the family change the name to Young World. Soon, the elder Isaac Chera started to invest in real estate. The best advice he gave to his family, according to his grandson, Haim, was to always buy the building where they had a store.
As a senior managing director and head of retail services in the Americas at Cushman & Wakefield, Matt Winn oversees 325 brokers making deals from Canada to Brazil. In previous roles at C&W, the Atlanta-based Mr. Winn handled the expansion efforts of tenants including Nike, Abercrombie & Fitch and Ann Taylor. The Commercial Observer caught up with Mr. Winn at his company’s booth on Monday morning at the International Council of Shopping Centers’ RECon real estate summit in Las Vegas to discuss the return of “true luxury” and strategies for walking the convention floor.
In 2009 and 2010 “you could have rolled a bowling ball down the aisle” at the International Council of Shopping Centers’ RECon conference “and it wouldn’t have hit anybody,” Massey Knakal executive vice president of retail leasing Benjamin Fox told The Commercial Observer.
But when an estimated 33,000 real estate professionals converged upon one million Read More
David Greene had retail brokerage on his mind, and he didn’t want a lone wolf.
Mr. Greene, the president of brokerage services at Murray Hill Properties, was assembling a retail team at the firm, which had gone without one for nearly four years.
He was drawn to Christine Emery and Yair Staav, who had formed a partnership at The Lansco Corporation in 1999 and proceeded to build the New York presences of tenants including Uniqlo, Hermès and La Maison du Chocolat. A long courtship followed and has now culminated in Emery-Staav Retail at MHP.