New Tenants Dress Up NYC's Garment District

Retailers are increasingly weaving their way through Manhattan’s Garment District, setting up shop in the neighborhood that was once very specialized and catered to the fashion industry. Now, retailers, cafes, and upscale restaurants are taking over storefronts—and landlords are hustling to invest in renovations to spaces that are of interest to retailers willing to pay top dollar.

Retailers aren’t the only tenants taking space in the district, although CRE experts predict that trend will probably continue as storefronts become available. Office tenants, including technology, advertising, and media companies are moving into the area.

Meanwhile, rents in the neighborhood—which from north to south is bordered by 35th and 41st Streets and from east to west by Fifth and Ninth Avenues—are reflecting the popularity of the area: Two years ago average asking rents per square foot for ground retail space ranged from $125 to $150, and are now between $200 and $350.

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