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New York Observer

Street Retail Looks to Malls in Figuring Out Ways to Cope With Big Rents

While malls and shopping centers are looking for ways to save themselves from crushing retail headwinds, at least one group thinks they’ve got something to learn from them: street retail.

The guys with the shops on the sidewalk are taking a page out of their playbook when it comes to structuring deals.

Young retail companies, e-commerce brands and even some legacy retailers looking for a brick-and-mortar presence are asking for terms long found in shopping centers—low base plus a percentage rent (meaning the retailer pays the landlord a certain percent of every dollar in sales over a certain threshold).

These deal structures aren’t confined to less trafficked and less high-profile areas of the city.

Lee Block, an executive vice president at Winick Realty Group, said that while he hasn’t closed any deals that incorporate a percentage-rent component, “we’re considering it on a handful of spaces that we represent.” That was the message conveyed by many brokers and landlords with whom Commercial Observer spoke.

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NY Observer-120717-Street Retail Looks to Malls in Figuring Out Ways to Cope With Big Rents

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.

 

Real Estate Weekly

Shampoo startup bubbles up in SoHo with West Broadway lease

Function of Beauty, a New York-based startup that uses a proprietary algorithm to create personalized shampoos and conditioners, has signed a lease at 355 West Broadway in SoHo.

The company, which was founded by MIT graduate Zahir Dossa in December 2015, will occupy the building’s fourth and fifth floor duplex with office space and an exclusive showroom.

Function of Beauty is expected to open their office and showroom in Fall 2017, when clients will be able to come in for appointment-only consultations that result in up to 12 billion different shampoo and conditioner formulations.

“With Function of Beauty, we are able to take an industry that has been stagnant for many years and turn it into something personalized and experiential for our customers,” said Dossa. “Having this showroom allows our customers to get a first-hand look at how their individualized hair care products are formulated in ways that celebrate their unique hair type and beauty goals.”

Daniyel Cohen, an associate at Winick Realty Group represented Function of Beauty in its lease along with Winick president Steven E. Baker. Winick executive vice president Lee Block represented landlord Quality Capital.

Each floor measures 1,100 s/f, including an outdoor patio, and dedicated elevator access to each floor.

For more, download the full article in PDF

rew_113017_Shampoo startup bubbles up in SoHo with West Broadway lease

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 Real Estate Journal

Now is the time for global brands to enter the New York City retail market – by Lee Block

The story of brick-and-mortar retail’s demise has been a popular narrative both far and wide. The recent spate of nationwide store closings and bankruptcies from well-established brands have caused some alarm amongst retailers. In New York City specifically, high retail rents have priced out many businesses as landlords demand top dollar. In turn, vacancy rates have steadily climbed over the past 24 months to levels approaching those seen at the height of the Great Recession.

However, the economy of New York City today is much different from that in 2008, or even at the height of the retail boom in 2014 – in fact, it is more robust than ever. The Gross City Product (GCP) of New York is $1.5 trillion, second only to Tokyo amongst cities, and would rank amongst the top 20 countries in economic output – placing it just behind Canada ($1.6 trillion). Moreover, the city’s growth rate continues to outpace other major industrialized European cities, and the U.S. as a whole. New York’s GCP has grown at a rate of 2.3% in Q1 and Q2 of 2017, while the U.S. GCP has grown at a rate of 0.7% during the same time. New York is also adding over 33,000 jobs (3.1%) per quarter in 2017. And its unemployment rate of 4.3% is the lowest ever recorded for the city. In a time where wage stagnation is a major concern for the U.S. and other industrialized economies, New York’s personal income rose 9% year-over-year from 2016.

With that knowledge in hand, it can be inferred that climbing vacancy rates and ensuing rent reductions in the retail sector are not signs of an economic downturn, but market course-correction – one that can be seen as an unprecedented opportunity for foreign retailers to break into the New York market at deeply-discounted rental rates and abundant landlord concessions.

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NYRE Journal_11217_Now is the time for global brands to enter the New York City retail market

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

MAPIC 2017: Retail Headwinds Can’t Cloud the Vibe in Sunny Cannes

At this year’s MAPIC in Cannes, France, there was a mix of concern as well as optimism.

Fred Posniak of Empire State Realty Trust told Commercial Observer that there was “no doom-and-gloom” vibe at the international retail property trade show—and if attendance at MAPIC was any indication, things aren’t so bad. This year’s attendance was up 100 people to roughly 8,500 participants from 2016, according to MAPIC Director Nathalie Depetro. Like last year, attendees hailed from 260 countries around the world.

In New York City specifically, deals are starting up again after a dry spell, as evidenced by the recent transactions involving Levi’s, which is moving its Times Square store to a new 17,250-square-foot location at 1535 Broadway, and Vans, which agreed to take 8,573 square feet for its second Manhattan location at 530 Fifth Avenue.

“I think there is momentum,” said Lee Block of Winick Realty Group.

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NY Observer-112017-Retail Headwinds Can’t Cloud the Vibe in Sunny Cannes

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 First Showroom for Innovative Hair Care Start-Up Function of Beauty

Function of Beauty, a New York-based startup that uses a proprietary algorithm to create personalized shampoos and conditioners, has signed a lease at 355 West Broadway, located between Broome and Grand Streets in the heart of SoHo.

The company, which was founded by MIT graduate Zahir Dossa in December 2015, will occupy the building’s fourth and fifth floor duplex with office space and an exclusive showroom. Each floor measures 1,100 square feet, including an outdoor patio, and a dedicated elevator that provides access to each floor, making it possible for Function of Beauty to bring customers into the showroom without walking them through the office space. Ownership gut renovated the building, creating an all-glass window line on the front and rear of the upper floors that brings striking natural light into the space.

“Function of Beauty spent six months searching for the perfect brick-and-mortar location. First they focused on ground-floor retail sites but soon realized that a showroom like this would not only befit the exclusive, by-appointment nature of their business but also give them an eye-catching, Instagram-worthy space that is well-suited for such a social media-savvy brand,” said Daniyel Cohen, an associate at Winick Realty Group.

Cohen represented Function of Beauty along with Winick Realty Group President Steven E. Baker, while Winick Realty Group’s Executive Vice President Lee Block represented landlord Quality Capital.

Function of Beauty is expected to open their office and showroom in Fall 2017, when clients will be able to come in for appointment-only consultations that result in up to 12 billion different shampoo and conditioner formulations.

“With Function of Beauty, we are able to take an industry that has been stagnant for many years and turn it into something personalized and experiential for our customers,” said Dossa. “Having this showroom allows our customers to get a first-hand look at how their individualized hair care products are formulated in ways that celebrate their unique hair type and beauty goals.”

Along with colleagues Renee Tabache and Spencer Bowers, Block is continuing to market the remaining retail and showroom space in the five-story building, seeking tenants who will complement Function of Beauty, as well as the surrounding SoHo shopping district. The 2,100-square-foot, ground-floor retail space features an exposed brick interior with an open layout and no columns, as well as prominent flagpole signage. On the second and third floors, up to 3,600 square feet of showroom space is available with outdoor terraces on each floor, a new elevator and a fully built-out space ready for a tenant to move in once a lease is signed.

For more, download the full article in PDF

citybiz-103017-Winick Realty Group Leases First Showroom for Innovative Hair Care Start-Up Function of Beauty

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.

The Third Age of American Retail

Reports about retail in North America show nothing but doom and gloom, with predictions of store closings, mall shut-downs and more. But no-on seems to have told retail real estate owners and developers. Retail complexes are adding other uses, especially food and beverage (F&B) to their complexes, while high streets are adding retail, especially dining, to office buildings.

All are doing so to attract a shopper who increasingly wants a big-city, pedestrian-friendly feeling and is looking for experiences above and beyond merchandise. It isn’t surprising, then, that projects in urban markets are adding other uses—office buildings such as the Willis Tower (formerly the Sears Tower) in Chicago are expanding their retail offerings, while retail projects are including more F&B.

And don’t count out New York City, says Lee Block, executive vice president of Winick Realty Group. “The high street in retail is still thriving, especially in New York in areas where tourism is strong,” he says. “International retailers want a global audience.

The high-income earners in the best-known retail streets are supplemented by a strong tourist base. Block says he is bullish about Lower Manhattan, especially the street retail, as well as the Westfield World Trade Center and Brookfield Place. The region is under-retailed and under-served, he believes. “The area from Broadway to the East River is as dense as anywhere else in the city, and retail has just started to perk up,” he adds. “We’re also seeing really cool restaurants”—a sector that he says is particularly needed.

But other areas are coming on the radar screen, including Downtown Brooklyn and Brooklyn Heights, just across the East River. “Brooklyn has a cachet to it and there are certain tenants that belong there first,” Block says. “There are different opportunities depending on where the customer base is.”

For more, download the full article in PDF

MAPIC News-October 2017-The Third Age of American Retail

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.