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Retailers focusing on showroom concepts drive down Manhattan apparel lease size

With competition from e-commerce applying pressure to brick-and-mortar storefronts, retailers around the country are looking to downsize store formats

December 11, 2019
  • With competition from e-commerce applying pressure to brick-and-mortar storefronts, retailers around the country are looking to downsize store formats and reimagine the use of physical space.
  • No sector has experienced this more viscerally than the apparel industry; the average size of leases for apparel tenants in Manhattan has decreased by 55 percent since they peaked in 2015. 
  • Retailers like Bonobos and Indochino popularized the showroom model in their physical storefronts, wherein very little inventory is carried and the store acts almost exclusively as a touchpoint for the brand. 
  • As department stores continue to struggle nationally, retailers like Nordstrom have begun to experiment with the showroom model as well, which has contributed to the observed decrease in apparel lease size. 

Source: JLL Research

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