FEATURE ARTICLE, MAY 2005

HOT RETAIL SPOTS IN NEW YORK CITY
Some areas are still on the upswing, while other areas are connecting more established retail neighborhoods in New York City.
Richard B. Hodos and Christopher J. DeCrosta

One of the most interesting aspects of practicing retail real estate in New York City is the finite amount of space. Unlike most other cities, the luxury of wanton expansion or development does not exist. That said, retailers in New York City continually wow shoppers by forcing them to travel to new neighborhoods or through very inventive space. Now that the discriminating New York shopper has seen everything, the question remains: Which neighborhoods or spaces are sure to be the next big thing?

The Meatpacking District

Located on Manhattan’s West Side in the few blocks south of 14th Street between Ninth and 10th avenues is an area known to New Yorkers as The Meatpacking District. Named after the processing plants that once filled the buildings — only a few plants remain — it is now home the some of the most trendy and high-end retailers. On evenings and weekends, this neighborhood is flooded with celebrities and wannabes that pack the many upscale restaurants and nightclubs like Lotus, Markt, Spice Market, SoHo House, Pastis and The Gansevoort Hotel. This “New SoHo” is filled with retailers like Yigal Azrouel, Rubin Chapelle, Stella McCartney, Puma, DDC Lab, Jeffrey, Scoop and Design Within Reach.

NoLita

The Meatpacking District uses its out-of-the-way location to achieve a desired effect of exclusivity, but many neighborhoods benefit from their proximity to established retail locations. Bordered by Houston Street to the north, Bowery to the east, Lafayette Street to the west and Kenmare Street to the south, NoLita (North of Little Italy) was initially attractive to retailers because it abuts SoHo directly to the east. Now, however, it stands not only as an extention of SoHo, but also as a separate and equally viable retail destination. The quaint streets and small floorplates are ideal for an up-and-coming or indie brand, but some national retailers are finding their place among the boutiques, as well. Ralph Lauren and Miss Sixty have stores here, while Cath Kidston has chosen NoLita’s main drag, Mulberry Street, for her first U.S. store. Other retailers include Seize Sur Vingt, Prohibit, Me & Ro, Calypso, Janet Russo, Christopher Totman, Sigerson Morrison and Paul Frank.

Lower East Side

There has also been an increase in the number of retailers who call the historic streets of the Lower East Side home. This area, east of NoLita and SoHo, lies just south of Houston Street and east of the Bowery to the East River. Historically, this was the bargain district where pickle vendors and garment suppliers occupied its storefronts. Old tenement buildings are now filled with a younger, hipper New Yorker, and the neighborhood’s selection of retail and restaurants reflect that. Cutting-edge retailers like DDC Labs, The Reed Space and American Apparel have opened stores on Orchard Street, and Eldridge Street has recently landed retailers Recon, NORT235 and Miss Behave. Whether many national retailers will place their stores in the Lower East Side remains to be seen, but right now the eclectic mix of restaurants, bars and boutiques makes it a very cool neighborhood.

Bridging Established Retail Areas

Because of the high demand for retail, many in-between areas are filling in and connecting two established shopping neighborhoods. New stores popping up on Hudson Street are helping to blur the line between Bleecker Street and The Meatpacking District. Hudson Street, the continuation of Ninth Avenue south of 14th Street, is the natural connector to the high-end retail cluster on Bleecker Street between Eighth Avenue and Charles Street. Some new additions in the area include Catherine Maladrino, Constanca Basto Shoes, Calypso Boutique and Bivio Restaurant. These shops on Hudson Street complement the ever-growing list of retailers that can be found on Bleecker Street. Similar in appeal to NoLita, Bleecker Street is the main shopping stretch in New York’s West Village. Stores like L’Uomo, Cynthia Rowley and Robert Marc can all be found there, while Ralph Lauren has two locations and Marc Jacobs has three. 

Changes are taking place in another downtown neighborhood, thanks to Bloomingdales’ new SoHo location. This has pushed the traditional border for high-end retail down a block or so, shifting both the boutiques and the national retailers closer to Canal Street. More importantly, this movement is bringing attention to the stretch of Broadway that was once considered to be undesirable. 

Uptown, in another location that had been previously considered unattractive, Time Warner Center promises to function as a bridge between Times Square/Midtown West and the Upper West Side. Spurring retail development around Columbus Circle and ultimately linking the two neighborhoods with a constant stream of traffic, The Time Warner Center has knocked down the barrier once separating these areas. Hugo Boss, Joseph Abboud, Cole Haan, Sephora, Borders Books & Music, Coach, Aveda, Whole Foods Market, Thomas Pink and Williams-Sonoma have all opened here, in a location that once would not have been considered viable. The success of the shops here is a testament to the demand for retail in Columbus Circle, and suggests that development will continue in the immediate area.

Ever-Changing Manhattan

The beauty of Manhattan is that it will always yield new and interesting spaces for retailers. The ever-changing and organic nature of real estate, business, development and urban life ensure this. And no matter what, people will continue to be attracted to shopping and dining here. The same cannot be said of all markets. This is why retailers, despite the conditions of the national market or other regions, will always be bullish on New York.

Richard B. Hodos is president of Madison HGCD in New York City and Christopher J. DeCrosta is a director.

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