Retailers around the country may be shuttering branches and going out of business, but New York’s Fifth Avenue is apparently recession-proof. Setting a record for a New York retail lease, Japanese clothing retailer Uniqlo will pay $300 million over 15 years for a spot on Fifth Avenue and 53rd street.
Bloomberg points out that the stretch of Fifth Avenue attracts everyone from tourists to Apple fanboys, and is so desirable that landlords are willing to buy out retailers that won’t pay a premium:
“It’s just another reinforcement that retailers have to have a Fifth Avenue presence,” said Faith Hope Consolo, chairman of retail leasing, marketing and sales for Manhattan- based Prudential Douglas Elliman Real Estate. “Fifth is going to be their face to the world.”
The deal will be the highest aggregate amount paid to lease retail space in New York City, beating Gucci Group NV’s $16.5 million in annual rent for about 45,000 square feet at Trump Tower three blocks north, [broker Bradley] Mendelson said.
The landlords at 666 Fifth Ave. paid Brooks Brothers Inc. $47 million in 2008 to vacate the space eight years before its lease ran out, [landlord Haim] Chera said.
Uniqlo will pay $20 million a year for its 89,000 square-foot space.
New York’s Fifth Ave. Sets Record with Uniqlo Lease [Bloomberg.com]