Across the city, landlords want a seat at the table. More specifically, they want the seats, and they want the tables inside their buildings. Fast-casual restaurants, coffee shops, and juice bars are expanding across Manhattan, driven in part by a large millennial workforce and dense, wealthy demographic.
Also, though, as consumers behaviors have changed, opportunity has opened up for foodservice operators. More and more retail and apparel is being purchased online, which has caused these companies to trim store sizes. Now, with new inventory available, restaurants are building new locations even faster. In 2015, the fast-casual segment grew to $44 billion nationwide–an 11.5% increase from 2014, according to Technomic.
Similarly, Manhattan lease transactions in the food and bar category increased 22% in 2015 over 2014, Cushman & Wakefield reports. Meanwhile, drugstore leases were down 64% and apparel and accessories retails were down 22%.
Where banks and retailers once occupied large-footprint spaces, some landlords are building out food halls or dividing spaces into smaller units. “You’re getting more [rent] than what a single tenant would pay,” said Brett Herschenfeld, SL Green Managing Director.
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Registration is now open for both exhibitors and attendees to the NY NOW Home, Lifestyle and Gift Exhibition at the Javitz Center. The event takes place over the course of 5 days, and will feature products from over 2,000 suppliers ranging from food and beverage to gifts and home goods. NY NOW is a unique opportunity to check out the latest in retail, often before it hits the shelves.
At Tara Paige, we love summer in the city – the patio dining, food festivals and street fairs (not to mention the reduced lines at some of our favorite spots). But we still need to hit the road occasionally, and check out the concepts that have people buzzing all over the country. Which brings us to this special travel edition of our retail spotlight, on