Aside from the sales, supply and recruitment impact of the pandemic, food and beverage consumers continue to lead all retail leasing categories in the Big Apple – and the lead has grown even larger compared to last year.
We looked at some as-yet-unpublished CBRE data showing the exceptional resilience of edibles and beverages in today's historically challenged retail leasing market.
In 2020, F&B leases accounted for 28.6 percent of all retail deals in terms of number of locations, compared to 17.6 percent for the runner-up. The 242,713 square feet of F&B square feet handily exceeded 179,076 for clothing use.
The runners-up in the financial services, jewelry, cosmetics and health categories lagged far behind.
The data for 2021 to date shows even greater F&B strength.
It made up 31 percent of all retail stores, followed by clothing with 17.1 percent. Although square footage was not yet available, the numbers are expected to show a corresponding dominance of F&B over other categories.
Perhaps more impressive is that the category doesn't even include grocery, convenience, or wine stores.
In fact, while often overlooked, F&B has been at or near the top of the retail categories since CBRE started tracking it in 2010.
Matt Chmielecki, SVP for retail leasing at CBRE, said F & B's resilience during the pandemic was all the more remarkable given that "F&B deals can be negotiated for months". But tenants have a very forward-looking approach.
"Nobody has used the term 'new normal' for 6 months. Now everyone sees light at the end of the tunnel, "said Chmielecki.
He said that most new deals have "some sort of start-up period" of a year or two that includes a low starting rent and percentage lease agreements that benefit both parties. "The landlord and tenant are now on one side. In the third year of a new lease, rents will essentially be the same as before, "he said.
Coincidentally or not, five of nine nominees for New York Real Estate Board's "Most Ingenious Deals of the Year Awards" for retail are for F&B leases. Notable among them is the commitment of the seafood restaurant Avra, covering more than 16,000 square feet on Rockefeller Group's 1271 Sixth Avenue, where Avra was represented by a CBRE team.
The winners will be announced on August 5th.
![CBRE manager Matt Chmielecki against the backdrop of 1271 Sixth Avenue]()
The company of CBRE managing director Matt Chmielecki has signed the lease for the fish restaurant Avra at 1271 Sixth Ave.
As if to illustrate the results from CBRE, two other recent restaurant deals show how perseverance and patience have overcome the challenges of the Covid-19 era.
Chef David Burkes Mister French moves from 218 Bowery to the larger 4,400-square-foot former Almayass dig at 24 E. 21st St., while American bistro L'Adresse is expanding from its Bryant Park location with a second home on 1184 Broadway on 29th Street in Nomad.
Both tenants were represented by Joshua Singer from the Heller organization. He said talks about Mister French's move began in the summer of 2020, "when New York City was a shell of its own. The deal was finally pushed forward last April, "said Singer.
The asking rent for the 15-year lease was $ 150 per square meter. Landlord Noam Management was represented by a Colliers team.
L'Adresse took longer. "The lease was originally signed shortly before the pandemic in February 2020," recalled Singer. "Like so many others, we had to [re]negotiate during the forced closings and reach a mutually beneficial agreement. "
The asking rent for the 15-year lease was $ 250 per square meter.
Rudin Management Company, which manages the interests of the Rudin dynastic real estate family, oversees 35 properties in the city, including 4.7 million square feet in 17 rental apartment buildings and 10.5 million square feet in 16 office buildings.
![Samantha Rudin Earls holds a poodle]()
Samantha Rudin Earls has been promoted to EPP.Patrick McMullan via Getty Image
The company also recently developed the Dock72 office tower in the Brooklyn Navy Yard and the Greenwich Lane condominium complex in Greenwich Village, investing heavily in the redevelopment of Three Times Square and 80 Pine Street.
In order to cope with the multifaceted portfolio in a challenging market, the company has now promoted five executives. Samantha Rudin Earls, daughter of CEO Bill Rudin, has been named executive vice president, as has Bill's son Michael Rudin. Both were previously Senior Vice Presidents.
"It is a special moment for our company and our family when the next generation of management advances. Samantha and Michael have clearly established themselves in these roles, "said company president Eric Rudin.
Chief Investment Officer Neil Gupta will also be promoted to EPP. Cassie Kulzer and Nick Martin have also been promoted to Senior Vice President.
ZMC Advisors is doubling its lease at 110 E. 59th St from Jack Resnick & Sons. The rental agreements are co-terminus.
Alexander Chudnoff and Dan Turkewitz from JLL represented ZMC. Resnick was represented internally by Brett Greenberg. Chudnoff said that expanding the ZMC onto a contiguous floor "successfully solved their growth needs".
The 612,181-square-foot tower is also home to Estee Lauder, Cantor Fitzgerald, and Royalty Pharma.
source https://seapointrealtors.com/2021/08/02/food-beverage-fortifying-commercial-nyc-real-estate-market/
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