Canadian fashion retailer Aritzia has signed what CoStar data shows as the largest retail lease in Manhattan this year.
The Vancouver-based retailer agreed to take a space spanning over 33,000 square feet across three levels at 608 5th Ave. along the southwest corner of West 49th St., Newmark, which represented the retailer, said Friday in a statement.
Aritzia, which currently has a store just steps away at 600 5th, will relocate to the new location when it’s move-in ready, store employees told CoStar News.
The new space, formerly home to British fashion retailer Topshop, has over 200 feet of wraparound frontage, Newmark said.
“The signing of this deal for Aritzia signifies both their continued commitment to physical retail as well as the strength and importance of Manhattan and the U.S. to the continued success and growth of the brand,” Newmark Vice Chairman Ariel Schuster said in the statement. “We believe this additional location will be an integral part of the retail streetscape, as was the case with Aritzia’s additional Soho location at 560 Broadway signed in 2020.”
Aritzia has five locations in Manhattan, including Super World NYC, one of its clothing labels, according to its website.
The retailer, which has more than 100 locations in North America, has been fast expanding. It recently inked Chicago’s largest lease in seven years on the city’s main shopping avenue, taking up the entire three-level, 46,000-square-foot building at 555 N. Michigan Ave.
It said in May its fiscal fourth-quarter revenue rose 66% to $444.3 million while net income more than doubled to $34.2 million.
The lease comes as the Manhattan retail market continues to see signs of recovery, with availabilities declining in all “prime trade areas” between the third and fourth quarters of 2021, according to Newmark research, adding retail leasing activity is approaching pre-COVID levels and is up 57% from 2020. After two years of quarterly drops in asking rents, some areas are beginning to see an increase, Newmark said.
Other brokerage firms also have made similar observations as many retail brokers have told CoStar News recently that they see no pullback yet in demand despite inflation, higher interest rates and other concerns.
For the Record
The property’s ownership, Omnispective, was represented by CBRE Vice Chairman Andrew Goldberg and Senior Vice President Jared Lack. Newmark’s Schuster and Associate Director Jason Wecker represented Aritzia in the transaction.