Lois Weiss

Lois Weiss

Real Estate

Foreign retailers are flocking to Manhattan, gobbling up prime storefronts

Don’t be fooled by those empty storefronts because retailers are fighting to find space in prime Manhattan neighborhoods.

“Where there is good product there is competition for it,” said Matt Chmielecki of CBRE. 

In Soho, prime corners on Prince and Spring streets have been lapped up, while nearby Broadway is getting tight. The space crunch is forcing tenants to look further south.

Club Monaco is leaving 160 Fifth Ave. James Messerschmidt

The Flatiron is also tight, but Club Monaco is leaving a 19,170-square-foot location on the ground and lower levels at 160 Fifth Ave. It’s being marketed through Brandon Singer at Retail by Mona with a ground asking rent of $450 per foot.    

Downtown dwellers will rejoice when the French department store, Printemps, opens this year in 55,000 square feet at 1 Wall St. 

Among those still looking for spaces are the Miami imports, Carrott Express and Pura Vita. Retailers seeking storefronts should head for Lexington Avenue near Bloomingdale’s and along West 34th Street, where there are more vacancies and lower rents. 

“We were sure that Barney’s closing was going to be the end of Madison Avenue and yet it is another example of small stores generating activity,” said Steve Soutendijk of Cushman & Wakefield.

If the large Barney’s at 660 Madison is cut into smaller stores, Soutendijk says they would quickly lease due to demand in that East 60th Street area that straddles the world of offices and luxury apartments.

Nearby, the office building at 625 Madison is being demolished and rebuilt by Related as a 1,220-foot-tall, 66-story, 101-unit luxury condo tower designed by SLCE architects with its eastern blockfront between East 58th and 59th streets, set to be chock full of new stores.

Moncler is relocating from 650 Madison Ave. Lorenzo Ciniglio/Freelance

“They are already having conversations and not opening until 2027,” Soutendijk said. “It will be great physical space with new storefronts and signage and it will be an incredible blockfront.”

A block north, between East 60th and 61st streets, Gary Barnett is razing 655 Madison Ave. to build a 37-story condo with 62 units that will likely include retail.

“That stretch from 58th to 61st Street will be entirely reinvented,” said Joel Isaacs of Isaacs and Co. “It will be prime, prime, space.”

Moncler is leaving Moncler leaving 650 Madison. Lorenzo Ciniglio/Freelance

In a deal arranged by Soutendijk, Moncler will leave 650 Madison and relocate to the whopping 24,000 square feet at 767 Fifth Ave. that was never occupied by Under Armor next to the Apple cube.

Don’t be surprised if the snow gear retailer adds a ski chalet-like café or other immersive experiences: It’s a recipe for success.

Dining areas in Tiffany’s new store, as well as the flamingos and food at Louis Vuitton’s temporary one at 6 E. 57th St., have been wins for LVMH. Meanwhile, LV is making its corner great again with a delightful suitcase facade safety wrap at 1 E. 57th.

To translate foot traffic into sales Louis Vuitton created an exciting storefront. Matthew McDermott

Soutendijk is offering 3,400 square feet at 680 Fifth Ave. next to the now open Swarovski, with an asking rent of roughly $2,500 that includes triple-height signage. He is also representing the former Henri Bendel’s at 712 Fifth Ave. on behalf of Paramount.

“We are looking for a brand that is cognizant of the history and at one with it architecturally,” he said of the landmarked building. “Landlords are much more in tune with a rent that is sustainable for these retailers. They don’t want the retailers to go bust and don’t want vacant space.”

Larger space users are also on the prowl to create immersive experiences with some of the most popular London-based promoters now seeking city spots. The Path Entertainment Group has already leased 11 Times Square for a yet-to-be disclosed immersive experience and expects to bring “Dirty Dancing: The Musical” to Broadway this fall.  

In Times Square, “GMA” has left a coveted space. James Messerschmidt

“You will start to see more of those large-scale experiential tenants,” said Chmielecki, who is marketing portions of the Crown Plaza Hotel at 1601 Broadway and the “Good Morning America” corner at 1500 Broadway as ABC decamps for the new Disney headquarters in Hudson Square. “Any large space of 40,000 square feet or more with high ceilings and limited columns in a prime area has at least one large experiential user looking at it.”

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