R
etailers are scrambling to find space in prime Manhattan neighborhoods, despite the prevalence of empty storefronts. According to Matt Chmielecki of CBRE, "Where there is good product, there is competition for it." In Soho, prime corners on Prince and Spring streets have been snapped up, while nearby Broadway is experiencing a space crunch.

    The Flatiron district is also tight, but Club Monaco is leaving its 19,170-square-foot location at 160 Fifth Ave. The space is being marketed by Brandon Singer at Retail by Mona with an asking rent of $450 per foot. Downtown dwellers will soon benefit from the opening of Printemps, a French department store taking over 55,000 square feet at 1 Wall St.

    Retailers seeking storefronts should consider Lexington Avenue near Bloomingdale's and along West 34th Street, where there are more vacancies and lower rents. Steve Soutendijk of Cushman & Wakefield notes that the closure of Barney's on Madison Avenue was initially seen as a blow to the area, but it has instead generated activity among smaller stores.

    Nearby, Related is rebuilding the office building at 625 Madison into a luxury condo tower with new retail space. Moncler is relocating from 650 Madison Ave to 767 Fifth Ave, where it will occupy 24,000 square feet. The retailer may add immersive experiences like a ski chalet-like café.

    Landlords are now more focused on finding sustainable rents for retailers, rather than maximizing profits. Soutendijk is offering 3,400 square feet at 680 Fifth Ave with an asking rent of $2,500 per foot, which includes triple-height signage. Larger space users are also seeking immersive experiences, with some London-based promoters looking to bring their events to the city.

    In Times Square, "GMA" has left a coveted space, and Chmielecki expects to see more large-scale experiential tenants in prime areas. Any large space of 40,000 square feet or more with high ceilings and limited columns is likely to attract at least one large experiential user.