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New York real estate inching upwards in retail rents

The New York real estate is breaking new records with the recent announcement that Hermes has renewed its 691 Madison Avenue lease for an estimated $1700 that that the other rents ma# go u er s!uare foot rime that sur rised most of international real estate buyers with real estate e" erts o ining higher in the near future$ %t is a fact that the rental growth in the &nited 'tates was somewhat restrained ()$7*+ com ared with ,011 and ,01,$ Hong -ong.s /ausewa# 0a# remains the world.s most e" ensive retail location for the second #ear running as er the 1Main 'treets Across the 2orld.s re ort3 of the global real estate consultant /ushman 4 2akefield$

After being relegated from the to the second $1000

osition for the first time in 11 #ears b# /ausewa# 0a# in er s! ft and 'oho is now seeing renewals for a# to have a resence on the most

,01151,6 7ifth Avenue in 8ew 9ork saw rental values remaining static but still holds on to lace in the ranking with $)000 er s! ft$ The real estate buyers are willing to

restigious streets of 8ew 9ork /it#$ 8evertheless6 sk#rocketing rents ma# force small retailers out of certain areas but old as well as new entre reneurs would then relocate to an u coming area thereb# creating com letel# new districts for retail$

The New York real estate as such does not have the ca acit# to roduce the same level of roduct diversit#6 as there is corres onding o ulation diversit#$ The housing crisis is a result of lack of :oned and market ca acit# and if left unsolved would result in affordabilit# crisis that would im ede the efforts to attract and retain diverse workforce that is vital to real estate NYCs long5term urban com etitiveness$ The 8ew 9ork cit# is growing slower than ro;ected and is e"ce ted that it will not reach an additional 160006000 new residents until the #ear5,0<0 and the available New York properties for sale does not have the ca acit# to house another 10006000 new residents$ The e"isting neighborhoods can house onl# 70* of the new residents because ma;orit# of the available air rights in these neighborhoods cannot be develo ed$

The rovision and !ualit# of housing is increasingl# becoming a ma;or determinate for global urban com etitiveness and for real estate NYC to become com etitive for the likes of attracting global ca ital with =ondon6 'hanghai6 Tok#o and Hong -ong then these factors must be taken into account as earl# as ossible$ /oming to the Manhattan office lease ro;ected that the #ear5,01) would deals6 the commercial brokerage /olliers %nternational

conclude with a total of about ,6 million s!uare feet of Manhattan office lease deals that were made$ These deals are more than two million s!uare feet above last #ear5,01, but still behind b# ,011 standards when nearl# about ,> million s!uare feet was leased$ The average asking rents for Manhattan rose b# $0$0< were u 0$,* in the month of @ctober and u er foot to $?9$,9 er s!uare foot last er the /ore logic.s month com ared to @ctober$ @verall6 the &$' home latest re ort$ rices including the distressed sales

1,$?* on the #ear as