FIFTH AVENUE: NOT FASHION WEAK
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|Once the domain of bank branches and gem dealers, Fifth Avenue between 42nd and 49th is pulling in ever more retailers. Yesterday, it was announced that H&M will place its largest store in the world at 48th and Fifth. At six stories, this one takes stacked urban retail to a whole new, well, level.|
|We dropped by the MetLife Building office of CBRE's Jedd Nero, who's done tons of retail leasing in this corridor, including repping H&M in its 42nd and Fifth lease. This time around, he repped the landlord, Western Management, in H&M's lease at 589 Fifth. Jedd tells us the retailer was on the hunt for at least 50k SF on Fifth, and the smaller floorplates in this part of town mean you have to go way up to reach that goal. The 57k SF that H&M took is basically getting into department-store territory, and indeed H&M will offer all its brands there, including its new housewares line. The store will open next year, according to the retailer.|
|We also snapped H&M's future home. Jedd was marketing the below-ground and first through third floors (35k SF), where Chase's lease was to expire this coming November. But with H&M's interest in a larger block in mind, Jedd worked with Western Management to free up extra space. He says the astronomical ground-floor retail lease rates that are famous north of 49th ($2,000/SF average asking) are making their way south ($900/SF average asking and climbing). A CBRE-commissioned study found more foot traffic here at 48th and Fifth than up at 52nd and Fifth.|
|Jedd also tells us there's a moratorium on new bank locations along Fifth (yes, there used to be that many). That means as spots like 589 Fifth yield to other kinds of retailers, the number of ATMs available to the retail corridor's shoppers will shrink. (By then, though, you'll be able to pay via telepathy.) So what's next on the Fifth Ave frontier? Moinian is marketing 84k SF (a full city block) between 44th and 45th, and Crown Acquisitions has 45k SF across the street. And there's Thor Equities' mixed-use demolition play at 520 Fifth, above.|