Louis Vuitton may be next for Fifth Avenue's luxury pop-up locale
March 15, 2012
By: Adam Pincus
Over the past decade, if you have been a top Fifth Avenue-area retail tenant rehabilitating your space within the tony shopping district, it’s likely you have opened a temporary storefront at a small building, 3 West 57th Street, just west of Bergdorf Goodman.
Top retailers Chanel, Coach and Bulgari have rented the retail space in the 12-story building owned by Kamram Hakim’s Hakim Organization, while they renovated their nearby flagship stores. ...
... The asking rent for the three-level retail space at 3 West 57th Street is between $400,000 and $450,000 per month, according to retail sources, for 4,000 square feet on the ground floor, 3,700 square feet for the lower level and 3,400 square feet for the second floor. That would equate to between $1,200 per foot and $1,350 per foot on the ground floor.
Patrick Breslin, an executive vice president for global retail at commercial firm Studley, said although that price is higher than most retail rents in Manhattan, it’s a good value for space just feet from Upper Fifth Avenue, where Cushman & Wakefield shows asking rents reaching $2,388 per foot at the end of 2011.
“It’s proven a really good deal for [luxury] retailers,” he said, who want to remain near their under-construction high-rent stores. If they don’t open a close-by store, retailers can “lose an enormous amount of cash flow. For the short term, the solution of the pop-up has become a friend to retailers and landlords.” ...
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