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Should NYC Landlords Take a Gamble on Short-Term Leases for Retailers?

It’s no secret that New York City retail real estate is a difficult market right now, with empty storefronts a common sight in even the most frequented shopping neighborhoods.
While some brokers are praising the popularity of pop-up stores as a means of rejuvenating the market, a recent report by Optimal Spaces argues that these leases are simply obscuring the true vacancy rate in Manhattan.
Senior managing director Stephen Sunderland, who wrote the report, compares vacancy rates to those of unemployment. “People will always give you the most optimistic number,” he said. “But just as unemployment rates don’t tell you who is working a temp job or who is underemployed, vacancy rates don’t tell the whole story.”
Although the November report claims that total available Manhattan retail space has increased to 1.53 million RSF (rentable square feet), from 1.5 million, the rate for the city’s downtown area has seen a small decrease (from 0.36 million to 0.35 million). Yet downtown Manhattan is also where the majority of pop-ups are located — and so Sunderland warns against reading this too positively.
Short-term leases are appealing to brands — offering the opportunity to test out retail strategies without long-term commitment — but it can be a

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Via:: https://footwearnews.com/2018/business/retail/nyc-retail-real-estate-trends-short-term-leases-1202705163/