Shopping Center Business

MAY 2016

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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HIGH STREETS 250 • SHOPPING CENTER BUSINESS • May 2016 For example, Mic- rosoft opened its first flagship store ever at 677 Fifth Avenue last October. In addition to showcasing its products in an innova- tive shopping environ- ment, the Microsoft store features two community theaters and a 40-foot-by-20- foot culture wall that displays digital imag- ery representative of Fifth Avenue culture. In another significant deal, Victoria's Secret has signed on for nearly 64,000 square feet — which will be its largest store — at 640 Fifth Avenue. As prices in upper Fifth Avenue skyrock- et, some retailers are opting to vacate their spaces and locate further south — leaving some gaping holes. "On Fifth Avenue be- tween 50th Street and 59th Street, there are between 35 to 40 retail vacancies," Kampler says. "That is huge." At the end of last year, the National Basketball Association (NBA), which left its space at 666 Fifth Avenue four years ago, opened its new flagship store seven blocks south at the corner of 45th Street. Adidas also recently signed on for a 34,000-square-foot flagship location at the corner of 46th Street. "Fifth Avenue used to have a hard stop at Rockefeller Center; now it bleeds down south to 42nd Street," says Chase Welles, broker with SCG Retail. "Eventu- ally the 34th Street corridor will turn the corner and Fifth Avenue retail will contin- ue marching south." Due to the growing demand, rents on these blocks are on the rise — though no- where near the asking prices to the north. "Going south on Fifth Avenue from 49th Street to 42nd Street, rents have gone up to the $1,300- to $1,500-per-square-foot range," Breslin says. Even though those rates are affordable in comparison, some industry experts are concerned about creeping vacancy on these blocks, too. "South of Saks Fifth Avenue, there are some large, two-lev- el potential flagship locations available in that zone which have not been leased," says Stephen Stephanou, principal with New York City-based Crown Retail Ser- vices. "This area is infilling, but there are still some buildings with holes. You ask yourself who will be the big players taking these spaces at these prices?" MADISON AVENUE Looking one block to the east, it's a very different retail story on Madison Av- enue. Here, luxury apparel prevails, and the shopper profile is more upscale and, oftentimes, local. Kampler Breslin Multiple Opportunities - NOW AVAILABLE! Restaurant, Retail, Bank, Hospitality, Shopping Centers, and more BROKERAGE DEVELOPMENT TENANT REPRESENTATION ASSET MANAGEMENT INVESTMENT SERVICES CONSTRUCTION SERVICES Block & Company, Inc., Realtors | 605 W. 47th Street, Suite 200 | Kansas City, Missouri 64112 | 816.753.6000 | For Information Contact: DAVID M. BLOCK | SALE-LEASEBACKS REO DISPOSITIONS 7 0 Est. 1946 7 0 KANSAS CITY'S PREMIER COMMERCIAL REAL ESTATE COMPANY We bring over 70 years of industry knowledge and experience to the table. Stephanou Byer Properties Same Exceptional Advisory Service for Over 25 Years SPECIALIZING IN MARKET ENTRY, EXPANSION, RELOCATION, ACQUISITION AND DISPOSITION Keith Kleinman • Mark Esses 310.449.1989 Partial list of Current and Past satisfied Clients NEW LOGO

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