Commercial Rents Rise On Harlem's 125th Street, Study Says

HARLEM, NY — Retail rents increased at a higher rate on Harlem's main commercial corridor than anywhere else in Manhattan since last year, according to a new study.

Ground-floor commercial rents on West 125th Street between Morningside and Fifth avenues rose an average of 10 percent since 2018, according to the Real Estate Board of New York's annual spring retail report. The rise is a sharp contrast compared to the state of Manhattan's commercial corridors as a whole.

Of the 17 commercial corridors studied by REBNY, 12 saw decreases in average rent and one stood still. West 125th Street was the only corridor that saw a double-digit increase in average rent. The average price per square foot on West 125th Street jumped from $124 to $137. The number is down slightly compared to fall 2018's average price per square foot of $140, but still indicates a strong year-over-year growth.

Other corridors that bucked the trend include Broadway between 42nd and 45th streets, West 34th Street and Broadway between 14th and 23rd streets in Midtown and Broadway between Battery Park and Chambers Street in Lower Manhattan.

REBNY frames the borough's declining rents as a "self correction" of the retail market which has led to an increase in "deal making."

Manhattan’s continued natural correction in retail rents is spurring deal-making across the borough’s top corridors as retailers reconsider new and existing ground floor spaces," REBNY President John Banks said in a statement "Our Manhattan Retail Report Advisory Group members have seen declining rents fostering a healthier leasing environment as more space is being absorbed at a more affordable rate than seen in recent years."

REBNY compiles its annual study with the help of leading commercial listing agencies such as Cushman & Wakefield, CBRE, RFK and the Empire State Reality Trust.