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The recession has hit the real estate market hard. Among the cities most impacted are New York and Las Vegas. So Footwear News asked Faith Hope Consolo, chairman of the retail leasing, marketing and sales division of Prudential Douglas Elliman Real Estate, to weigh in on the situation in Sin City and the Big Apple.
1. When will we see the completion of the many Las Vegas real estate projects that have been put on hold?
Given the state of the local economy, residential real estate will take some time to bounce back [in Las Vegas]. An analysis of moving requests conducted by Relocation.com shows that Las Vegas retained its top spot for people looking to make a long-distance move in cities with more than 1 million residents. That bodes well for retail projects such as CityCenter, which, despite delays, is attracting upscale retail tenants. As the U.S. and world economies improve, Vegas will grow again as a tourist and convention destination, boosting that market, too.
2. What neighborhoods in New York have remained strong for retail? Which areas are struggling?
East 57th Street remains dominant, with rents increasing 50 percent, to $900 per square foot, according to the Real Estate Board of New York. The Meatpacking District is still seeing rent gains. Midtown average asking rents increased 5 percent [this year]. Fifth Avenue in the Flatiron District, Broadway in Soho and Broadway between 42nd and 47th streets have all risen in asking rents. On the downside, Broadway on the Upper West Side has seen a 24 percent decline in asking rents, and Herald Square has had a 23 percent decline.
3. What shoe companies are scouting locations in Vegas and New York?
Cole Haan is opening at 141 Fifth Ave. Keito Shoes is going to 137 Fifth Ave. in the former Otto Tootsi Plohound shop. Isaac Mizrahi’s signature line, Isaac Mizrahi New York, will be Mizrahi’s first freestanding store and will feature his accessories, shoes and sportswear at East 67th Street between Madison and Fifth. Devi Kroell is moving forward with a vengeance, and the hot-pink barricade is up at 717 Madison Ave. for a fall opening. Meanwhile, CityCenter in Las Vegas recently announced several luxury tenants.