Madison Avenue has long been known as the destination for luxury shopping. Chanel, Louis Vuitton, Gucci, and Coach all reside there. Online-born brand Rebag recently established itself amongst these luxurious brands. Before, it would have never been able to afford the lease in this prime retail location. Thanks to the “retail apocalypse,” landlords are offering deals Rebag can afford.
According to Business of Fashion, “In New York, leases are also getting shorter, with landlords willing to forgo the usual 10-to-15-year terms to avoid letting a space sit empty.” Rebag isn’t the only brand taking advantage of these deals. Everlane and Cuyana both tested the New York retail scene with pop-ups. Other brands, such as Anine Bing and Veronica Beard, are opting for the lesser-traveled streets, where they can get one-tenth the market price of Fifth Avenue.
Jeffrey Roseman, the retail vice chairman at brokerage Newmark Knight Frank, sheds light on this new era of retail: “Now more than ever there’s a whole new world of entrepreneurial companies that have built a better mousetrap. All these companies are driving the market to take space.”
For the full story, head over to Business of Fashion.
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