Commercial Real Estate Booming In Union Square
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It seems to be the same story throughout the city; rents are down and commercial vacancy rates are way up. Yet, one neighborhood is bucking the trend. NY1's Jill Urban filed the following report.Union Square is seeing a boom.
"We are really fortunate that our retail vacancy rate is quite low," says Jennifer Falk of the Union Square Partnership. "It hovers around five percent right now in Union Square area, and even when things come online, we have been able to see they are picked up very quickly."
This year alone, 10 new commercial retailers have moved into the area, including a new Lululemon, Sketchers, and the flagship for eatery Pret A Manger. Best Buy will be taking over the old Circuit City spot at the south end of the park, and Nordstrom Rack has signed on to bring its first New York City store to the old Virgin Mega Store location next spring.
Falk says in the last five years, pedestrian traffic has increased by 59 percent. Aside from the fact that it's a major transportation hub and has the Green Market, she credits much of the neighborhood's success to solid anchor stores like Whole Foods, Filene's Basement and DSW, among others, as well as a strong customer base.
"We have the New School, NYU, Baruch, Beth Israel Hospital, Con Ed," Falk says. "These are all institutions that aren't going anywhere, so it's a great base for businesses to bring and hope they will get customers from."
In a down economy, it's more important than ever for businesses to get it right when looking to expand. Some new merchants in Union Square say choosing the location was a no-brainer.
"It has a bunch of different feels. It attracts people from all ends: you have your business worker, you have your tourists," says Danielle Penn of Pret A Manger. "Also, you have your artistic feel. You have your students. You have an eclectic mix of people here down here."
Pret A Manger just opened this summer on the corner of 17th and Broadway. Workers say revenue at this store is significantly greater than one you might find in Midtown. They feel this entire neighborhood is destination.
"They are attracting vendors as an all-in one place now," Penn says. "You can get your shoes. You can get your clothes, your food, furniture, groceries. You can get everything right here in Union Square, so it's working out for everybody."
It's clear the situation is working out for landlords, too.