Madison Avenue rent decreases encourage tenant activity
After many consecutive quarters of nearly no change in fundamental metrics, Madison Avenue is finally beginning to show signs of life.
- After many consecutive quarters of nearly no change in fundamental metrics, Madison Avenue is finally beginning to show signs of life. In Q3, the corridor exhibited the second largest rent decline of all the prime retail corridors at 14.9 percent year-over-year.
This has correlated with a notable increase in leasing activity; over the past two quarters, retailers such as Celine, Balenciaga, and Schutz all relocated onto the prime stretch of Madison Avenue.
- Already in the fourth quarter, other luxury apparel retailers have chosen to capitalize off of this activity as well: Mackage signed on for 3,963 square feet at 814 Madison Avenue in a 4-year deal, and Zimmermann leased 3,369 square feet in a 10-year deal at 900 Madison Avenue.
- As rents continue to correct, we can expect to see further sustained activity on Madison Avenue which should eventually drive availability down to a healthy range of below 10 percent.
Source: JLL Research