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The UES is facing a retail vacancy epidemic

In the heart of retail’s “Gold Coast” on the Upper East Side, the space that once housed trendy dress shop BCBGMAXAZRIA collects dust. The retailer called the five-story townhouse home at 770 Madison Avenue for over a decade, but shut the doors in February amid a larger corporate bankruptcy. The landlord has yet to find a replacement.

Over on Lexington Avenue, there are four retail vacancies near the corner of East 85th Street. And on the 13-block stretch of 3rd Avenue between East 70th and 83rd streets, there are only two blocks that aren’t marred by at least one empty storefront.

Manhattan’s streets are awash with empty storefronts after retail asking rents climbed to untenable levels and tenants started to push back. But the sheer number of vacancies on the Upper East Side is alarming: The Real Deal counted 82 empty storefronts along Madison, Lexington, Third and Second avenues between 57th and 96th streets during an afternoon in late July.

“That is a lot, and there’s probably 20 percent more that’s on the market,” in terms of space that’s currently occupied and available for lease, said Greg Tannor, a retail specialist who left Cushman & Wakefield in April to join Lee & Associates as a principal.

Third Avenue between East 57th and 79th streets saw the biggest increase in its availability rate during the second quarter among the 11 retail corridors tracked by Cushman. The availability rate rose 7 percent year-over year to 16.6 percent, according to Cushman’s most recent retail report.

And Madison Avenue between East 57th and 72nd streets saw the second-highest increase: a 5.3 percent jump to an availability rate of 23.5 percent, which is the third highest among the corridors the brokerage tracks.

The forces at play are different among Upper East Side’s different retail corridors. Madison Avenue, for example, is one of the city’s premiere luxury shopping strips with asking rents to prove it (an average of $1,431 per square foot).

Over on Third Avenue, asking rents average $283 per square foot, and experts in the area said the avenue’s shops are geared more toward chain apparel stores and national brands due to the kinds of large retail spaces that line the avenue. The struggles faced by national retailers, therefore, are having more of an impact on storefronts on Third Avenue than they would on a tony strip like Madison, brokers said.

“Third [Avenue], I think, is the first market to really struggle with some of the difficulties we’re seeing with national soft goods retailers,” Cushman’s Steven Soutendijk said. “They’re the ones that are struggling in malls across the country.”

In recent months, for example, stores went empty at 1030 Third Avenue when American Apparel closed up one of its last shops following a bankruptcy auction earlier this year. And Reebok left behind and empty storefront at 1132 Third Avenue after shutting down its FitHub location.

By comparison, Second Avenue is considered more neighborhood-focused, geared toward service retail like dry cleaners and restaurants located in smaller stores where top-line rents are more manageable.

Beyond the general woes facing retail, the avenue was long impacted by construction along the Second Avenue subway line, which finally opened earlier this year.

“Certainly, now that the construction has completed, those vacancies should naturally have to fill in,” Winick Realty Group’s Kelly Gedinsky said. “They’re not obstructed by bridges over the sidewalk space anymore.”

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THE REAL DEAL_080417_The UES is facing a retail vacancy epidemic

Winick Realty Group is one of New York’s prominent real estate firms specializing in retail leasing and advisory services.  Over the years, Winick Realty has served a broad range of domestic and global clients, with a strong emphasis on long-term representation and expansion and growth strategies.  Winick Realty Group is highly recognized as a forerunner in the retail real estate market.

New York Observer

Keep It Small: The Leases Where Mini Is Marvelous

While bigger is often considered better, when it comes to leases for some small businesses, the opposite can be the case.

Jewelry designer Angie Marei was looking to move her jewelry business out of her home office in Dumbo, Brooklyn, but wanted to remain nearby. She needed a space where she “could take client appointments, showcase my work in a showroom setting and also have space for my jewelry bench,” she said.

In searching around Brooklyn and Manhattan, she kept finding spaces that were just too large for her needs. But at Two Trees Management Company’s 45 Main Street in Dumbo, she found a cozy 187 square feet. She moved in on March 15 and opened Diaboli Kill Jewelry Showroom for business on June 1.

“I searched all around the Brooklyn and Manhattan, and most offices were too big for my needs. I was looking for a nice private office where I could take client appointments, showcase my work in a showroom setting and also have space for my jewelry bench. Since jewelry doesn’t take up much physical space, this 187-square-foot office was perfect for me.”

Speaking of 45 Main Street, designer Nicole Meléndez occupies 269 feet in the building and said that for her athleisure and swimwear studio, the square footage is just right.

“I’m in business to turn a profit, and it is not practical to get a big space for two to three people to be in, and [it] will be an expense that will have me chasing my tail,” Meléndez said.

The building has some shared spaces—a conference room on the floor and a fully furnished rooftop—which she and her employees can use.

“I’d rather get a well-designed space in a bright and comfortable environment that allows me to have a space to work but that I don’t have to work only to pay [for] the space,” she said.

For Rawmantic Chocolate owner Kasia Bosne, “the bulk of her business comes from selling her chocolate to other retail locations so she needed to have a presence but didn’t need a large space as long as there was a kitchen included for preparing chocolates on site,” Winick Realty Group’s Zach Diamond, the tenant’s representative, said via a company spokeswoman.

So when Rawmantic’s old landlord informed the organic chocolate company that it would be redeveloping the building where it was located, it found a 320-square-foot retail space at 1053 First Avenue between East 57th and East 58th Streets, where it will be opening in September, Diamond said.

And at 21 Crosby Street, Eastern Consolidated’s James Famularo did a series of small deals for boutique retailers Dinosaur Designs, Max-Bone, Fueguia and Annabel Ingall. He represented the landlord, Corigin Real Estate Group, and procured the tenants. The reason the tenants wanted spaces, all 400 square feet or smaller, came down to dollars and cents. “Bigger spaces were too expensive,” he said, referring to Crosby Street’s high rents. And the landlord knew as much, cutting larger spaces down to smaller ones to make them rentable to luxury goods shops.

For more, download the full article in PDF

NY Observer-072617-Keep It Small

Winick Realty Group is one of New York’s prominent real estate firms specializing in retail leasing and advisory services.  Over the years, Winick Realty has served a broad range of domestic and global clients, with a strong emphasis on long-term representation and expansion and growth strategies.  Winick Realty Group is highly recognized as a forerunner in the retail real estate market.

Citybizlist

Winick Realty Group Leases Second Location for Popular West Village Filipino Taqueria

thomas-galo-print-ver-profile-0012nd City, the popular Filipino Taqueria from celebrity chef Jordan Andino, has signed a lease for its second Manhattan location at 1752 Second Avenue, between East 91st and 92nd Streets on the Upper East Side.

Winick Realty Group’s Charles Rapuano and Thomas Galo represented both 2nd City and landlord AMAC Holdings in the lease transaction, which capitalizes on the increased excitement and foot traffic brought about by the newly-completed Second Avenue Subway, which stops steps from the property.

“Ownership was looking for a cool, hip tenant to capitalize on the new vibrancy in the neighborhood brought about by the Second Avenue Subway and that is exactly what 2nd City represents,” said Galo. “Their model is built on quick service and lots of repeat business, which will really serve the office workers, students and residents nearby. 2nd City will be a great asset to an already-booming area.”

2nd City will occupy 650 square feet of ground-floor retail space when they open in Fall 2017 and they are expected to build out the restaurant with the same artsy decorations customers have come to know at their West Village location.

Galo and Rapuano are hoping to bring even more hip, casual restaurant tenants to the block as AMAC Holdings tapped them to lease the space next door at 1750 Second Avenue. This fully-vented retail space is comprised of 650 square feet on the ground floor and 400 square feet in the basement. Featuring 10 feet of avenue frontage, the space has a kitchen in place and includes a walk-in fridge.

For more, download the full article in PDF

citybiz-071317-Winick Realty Group Leases Second Location for Popular West Village Filipino Taqueria

Winick Realty Group is one of New York’s prominent real estate firms specializing in retail leasing and advisory services.  Over the years, Winick Realty has served a broad range of domestic and global clients, with a strong emphasis on long-term representation and expansion and growth strategies.  Winick Realty Group is highly recognized as a forerunner in the retail real estate market.

New_York_Post_logo

Chef of popular Filipino taqueria to open second location

Jordan AndinoUp and coming celebrity chef Jordan Andino is opening a second 2nd City — the popular West Village Filipino Taqueria — this fall at 1752 Second Avenue, between East 91st and 92nd streets.

The 650 square foot space comes with 16 seats, and an additional 400 square feet in the basement.

Andino, who started cooking when he was nine years old, is a TV personality and a former flame of Kris Jenner. He also did stint on the Kardashian’s TV show as the family’s Hamptons chef.

Andino hopes to transform 2nd City — named not after Chicago but Cebu City, the first capital of the Philippines — into a chain as Filipino food is coming out into its own.

A third location is coming in Brooklyn. Andino’s mother, a model, artist and actress who was in, “Dude, Where’s My Car,” grew up in Cebu City while his father was a Toronto chef.

Born in Toronto, raised in California and “classically trained” in Napa and New York, Andino said his goal is to put Filipino food on the Michelin map — and he is creating his own “AmAsian” style to get it there.

Winick Realty Group’s Charles Rapuano and Thomas Galo repped both 2nd City and landlord AMAC Holdings on the Second Avenue site, which is capitalizing on the increased foot traffic brought by the newly-completed Second Avenue Subway, which stops steps from the property.

“Ownership was looking for a cool, hip tenant to capitalize on the new vibrancy in the neighborhood, and that is exactly what 2nd City represents,” said Galo. “Their model is built on quick service and repeat business, which will serve the office workers, students and residents nearby.”

For more, download the full article in PDF

NY Post_071017_Chef of popular Filipino taqueria to open second location

Winick Realty Group is one of New York’s prominent real estate firms specializing in retail leasing and advisory services.  Over the years, Winick Realty has served a broad range of domestic and global clients, with a strong emphasis on long-term representation and expansion and growth strategies.  Winick Realty Group is highly recognized as a forerunner in the retail real estate market.

dna_info_header

145 Vacant Storefronts an Upper East Side ‘Epidemic,’ Study Finds

hal-shapiro-258x300An “epidemic” of empty storefronts is plaguing the neighborhood — with nearly 150 vacant retail spaces clogging First, Second and Third avenues, a survey by mayoral candidate Sal Albanese found.

Albanese, who is running for mayor for a fourth time as an independent, and a couple of volunteers for his campaign surveyed a 114-block section of the Upper East Side — from 57th to 95th streets, along First, Second and Third avenues — and discovered 145 vacant shops.

Over the past few years, several neighborhood staples and mom-and-pop shops have closed up — many due to too high rents — including Mimi’s Pizza, Mon Petit Café and a number of grocery stores.

“It’s an epidemic,” Albanese, a former city councilman from Brooklyn, said on Thursday. “We had a lot of feedback from people complaining about that in their neighborhoods the local shoe repair shop or pizzeria went out. Two of my volunteers got out to survey the area and what we came up with is pretty dramatic.”

Michael Eigen, owner of Premier Cru Wine Merchants on Madison Avenue at East 86th Street, said it’s getting harder to hang on.

“With rents this high, you can’t have a bad month because there’s no margin for error,” he said in a statement. “As rent continues to increase, it is simply too difficult for me to fight this fight anymore. I have been able to navigate New York small business for over 27 years but feel that, soon, I will no longer be able to continue because there is no seeming upside.”

The Small Business Congress estimates that the city is losing roughly 1,000 small businesses per month, taking with it an average number of eight employees per business and about 8,000 local jobs every month.

Hal Shapiro, senior director of Winick Realty, said that while landlords are partially to blame for upping rents, many storefronts remain empty after eight years of Second Avenue Subway construction. The neighborhood is still catching up after the subway line’s opening in January, he noted.

“It is a lot [of vacancies],” Shapiro said. “A lot of sidewalks were closed — there were obstructions on Second Avenue, and there was an increase in the flow of pedestrian and vehicular traffic. It was very disruptive.”

He added that some landlords “priced themselves out,” but now they’re starting to “come back to reality and are more open to doing a deal,” noting that the landlords of four or five properties Shapiro works with in the area have gotten more reasonable.

“They’re becoming more creative, open and receptive to tenants’ needs and wants,” he said. “A lot of landlords want to make deals.”

For more, download the full article in PDF

DNA Info_062817_145 Vacant Storefronts an Upper East Side ‘Epidemic,’ Study Finds

Winick Realty Group is one of New York’s prominent real estate firms specializing in retail leasing and advisory services.  Over the years, Winick Realty has served a broad range of domestic and global clients, with a strong emphasis on long-term representation and expansion and growth strategies.  Winick Realty Group is highly recognized as a forerunner in the retail real estate market.

dna_info_header

Boxing Gym Backed by Stallone, Bieber Opening Upper East Side Outpost

rumble fitness buildingYo Adrian!

A boxing gym that counts Sylvester Stallone and Justin Bieber as investors is planning to open a location on Third Avenue by the end of the year, according to the company and reports.

Rumble, which has a location in Chelsea and is planning another in NoHo this summer, just signed a lease for 1495 Third Ave., between East 84th and 85th streets, The Real Deal reported.

Rumble will take over the entire five-story building, which used to house S Cavallo Antiques. SMA Equities bought the building last year for $18.2 million, city records show.

The new gym, which opened its first location in Chelsea earlier this year, specializes in boxing-inspired group fitness classes set to hip-hop and mood lighting, Rumble’s website says. The gym’s punching bags are actually filled with water.

The gym’s 10-year lease clocks in at about $1 million per year, Rumble spokeswoman Samantha Wenig said. She explained that the company chose the Upper East Side for its next location because the area’s demographic fits well with Rumble’s core customer.

Noah Neiman, who is a former master trainer at Barry’s Bootcamp and a cast member of Bravo’s “Work Out New York,” owns the company with Eugene Remm, Andy Stenzler and Anthony DiMarco.

Stallone invested in the company, which the New York Post called “the most anticipated group-fitness concept since SoulCycle.”

Winick Realty brokered the deal.

For more, download the full article in PDF

DNA Info_052317_Boxing Gym Backed by Stallone, Bieber Opening Upper East Side Outpost

Winick Realty Group is one of New York’s prominent real estate firms specializing in retail leasing and advisory services.  Over the years, Winick Realty has served a broad range of domestic and global clients, with a strong emphasis on long-term representation and expansion and growth strategies.  Winick Realty Group is highly recognized as a forerunner in the retail real estate market.