B
lackstone is making a bold move in Manhattan's retail market, purchasing a Soho portfolio from ASB Real Estate Investments for approximately $200 million. This deal marks the largest investor-led retail purchase in Manhattan over the past three years, signaling a shift in the market as investors regain confidence. The surge in demand is driven by rising rents and occupancy rates, with Soho emerging as a standout performer.

    Average asking rents in Manhattan reached $716 per square foot in the third quarter, an 8% increase year-over-year, according to CBRE data. Soho's Spring Street corridor saw a staggering 43% rent growth, reaching $828 per square foot, while Broadway retail experienced a 35% spike to $679 per square foot. Availability for retail spaces has decreased across Manhattan, with Soho experiencing a 55% drop in the third quarter.

    While some brands are opting to rent, others are taking control by becoming landlords themselves. Prada recently purchased its Fifth Avenue flagship for $835 million and acquired another address on Fifth Avenue for $12.6 million. Luxury giant LVMH has also been rumored to be exploring a purchase of 745 Fifth Avenue, the current home of Bergdorf Goodman's men's store. As CBRE's Andrew Goldberg noted, these brands are seeking to secure their own properties before the market shifts again.