Shopping Center Business is the leading monthly business magazine for the retail real estate industry.
Issue link: http://shoppingcenterbusiness.epubxp.com/i/903727
NEW YORK CITY 62 • SHOPPING CENTER BUSINESS • December 2017 kind of the last real frontier left; the rents are cheap and it's one of the few places that hasn't been developed to its fullest potential. You're seeing a lot of people that want to park money there." MOVING FORWARD The future looks bright for retail in New York City, as retailers continue to ex- periment with creative spaces and uses of technology, and the fundamentals contin- ue to balance out. "Like everywhere, there is a lot of supply in the market, and right now that supply needs to get absorbed and that's happening," says Goldban of Brookfield. "We're bullish on retail in gen- eral, and we're especially bullish on retail in New York City — it is the global capi- tal and it will remain the global capital. I think as retail evolves over time, flagship stores are going to become even more im- portant, and as retailers figure out their e-commerce and digital strategies, the ac- tual brick-and-mortar stores are going to become more important." He continues, "When you're thinking about having a flagship store and exper- imenting with your brands, where else would you want to try it? You're going to want to try it in New York City, because that's where all of the media is, where all the tourists go to shop and where a lot of the money is. Retailers are going to keep coming here, they're going to keep thinking big and they're going to keep ex- perimenting. Long-term, I think the retail future in New York is very bright." Consolo of Douglas Elliman agrees. "As we continue to embrace the omni-chan- nel model, new retailers are learning how to parlay that into their store structures and use it to its full potential," she says. "Business will increase and these retailers will need new stores where customers can touch and experience the products before they buy. Holiday 2017 is predicted to be better than the past two years. People are researching online and on their phones to prepare for the holidays. We are seeing stability in the market and I am looking forward to a good Holiday season. I pre- dict a 6 to 8 percent increase in sales." While some headlines speak doom and gloom towards the retail indus- try, Pandolfo of The Shopping Center Group believes the industry is in an up- ward trend. "We hear a lot of headlines about the retail apocalypse and the impact of e-commerce on retail, and I think to some degree certain tenant categories have pulled back and they're waiting to see how they merchandise spaces, what their square footage needs are and how they can adapt to this online retail revo- lution that is occurring," he says. "There is a lot of vacancy in New York City, but it gives tenants the opportunity to test the market in some cases. What I am seeing is shorter terms requested by tenants, so there's not as much of a willingness to commit, but they are still very focused on coming to Manhattan. The market is in a bit of a correction and we're feeling that effect, but we're very optimistic for 2018 and even the end of this year. I've seen leasing velocity pick up for the past two years now. I think it's an upward trend that makes us very hopeful." SCB Real Estate Brokerage Property Management Asset Repositioning Retailer Advisory Services Representing these fine companies: The Jacob K. Javits Convention Center 655 West 34th Street, New York, NY 10001 VISIT OUR BOOTH #744 or contact us to schedule a meeting 908.604.6900 or info@silbertrealestate.com Please visit our website for our property availabilities: www.silbertrealestate.com