'New York White House' impacts 5th Ave. retailers, real estate

- Things happen in New York all the time, but clearly we didn't see this one coming says Jeffrey Roseman, Executive Vice President with Newmark Grubb Knight Frank, one of the largest commercial real estate firms in the world.

If retailers on 5th Avenue didn't see a Trump presidency coming, they certainly didn't anticipate all the security and barricades that come with a 'New York White House' as some are calling it.

In fact, just a few weeks ago, on their earnings call, Tiffany said traffic and sales are both down at their Fifth Avenue Flagship and they're concerned it could continue.

Roseman says just go by Tiffany and Gucci and you can see how difficult it is for someone to get in.

He believes the shops on 56th and 57th streets are also affected and says this is something that will extend beyond Trump's presidency, if his family continues to live in Trump Tower.

So what should those retailers do?

Roseman thinks they'll come up with an alternative strategy and maybe open a pop-up shop or additional store a few blocks away.

The problem is that 5th Avenue is already jam packed with few options to relocate and stay on the avenue. In spite of its sky high rents, 5th is still the hottest avenue in town and a big moneymaker.

Roseman believes that real estate prices on 5th Avenue have reached their saturation point.

With rents close to $4,000 a square foot, he doesn't think they can go much higher. But he says, never say never in New York City.

So can retailers actually make money paying those kinds of prices? Absolutely.

Roseman says most stores make more money in Manhattan than anywhere else. They could have 600 stores across the country, but their highest grossing one will often be in New York City.

While some of the stores on 5th are having a tough time right now, Roseman says, if they can figure out how to get customers around those barricades, in time, they may see more foot traffic than ever.

He thinks Trump Tower is now the biggest tourist attraction in town, with people coming by to gawk and get a glimpse of who's walking in and out.

That's bringing more people to the area and it's just a matter of figuring out how to get them in and out of the surrounding stores.

Up Next:


  • Popular

  • Recent

Stories you may be interested in - includes Advertiser Stories