Despite headlines about store closures, retail opportunity remains positive as new stores open and alternate paradigms emerge, especially in New York’s prime urban retail corridors.
In New York City’s upper Fifth Avenue shopping corridor, Under Armour will open its newest flagship store in 2018, in the former FAO Schwarz space vacated in 2015. Old Navy and The Gap will open flagships together in the former Toys “R” Us space in the Bow Tie building at 45th Street in Times Square.
Creative, experiential concepts are inspiring some retailers to reinvent themselves. The NFL Experience Store is opening 40,000 s.f. at the corner of 47th Street and 7th Avenue in Times Square in fall 2017, in a venture with Cirque du Soleil that will blend sports and entertainment with innovative exhibits and interactive high-tech displays, as well as sell apparel and charge for certain events and programming. Nike opened a five-story, 50,000+-s.f. flagship on Broadway in Soho, offering consumers an interactive experience with products, and space to play soccer and basketball. Google’s pop-up store in Soho (pictured above) over the holidays allowed visitors to try out Google Home in a sample kitchen and test out virtual reality goggles. Another digital-to-physical retailer is home appliance retailer Pirch, which opened a flagship showroom in Soho and offers weekly cooking classes given by top chefs, and shoppers may test-drive appliances, even the showers.
Considering opening a store or buying urban retail space in one of New York City’s retail corridors? Read JLL’s New York City-specific mini City Retail report about New York’s average asking prime retail rents, annual rent growth rates and average cap rate ranges. For more about eight trends shaping retail of the future, including clicks to bricks and click-and-collect shopping, click here.