Traditional Retail May Be Waning, but NYC Retail Space Won't Give Way to Residential or Office Use,October 6, 2014
However, Retailers That Sell Physical Products Will Give Way to Those That Sell "Experiences," According to Marks Paneth Survey
NEW YORK, NY--(Marketwired - October 06, 2014) -
Traditional retail may be dying under pressure from Amazon and other online sellers, but that doesn't mean that retail space in New York will disappear. Real estate executives are convinced that New York City storefront space will still be used for selling and won't be repurposed for residential or office use, according to a survey of 100 top-level New York City commercial real estate executives, including owners, brokers, agents, engineers, accountants and lawyers specializing in the commercial space.
Retailers that sell physical products will give way to those that sell "experiences," such as restaurants, bars and fitness businesses, according to the Summer 2014 Gotham Commercial Real Estate Monitor survey by accounting firm Marks Paneth.
"Executives are confident that the retail sector will stay healthy even as the nature of retailing is fundamentally transformed," said William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth.
A significant majority -- 62% -- of commercial property executives believe it's likely that stores that sell experience-based commodities will take the place of traditional stores. And nearly seven out of 10 (68%) say it's "not too likely" or "not at all likely" that storefronts will be transformed into office or residential space.
Continued demand for retail space will keep rents at least level, the executives predict. Nearly three-quarters (73%) say it's "not too likely" or "not at all likely" that retail rents will come down.
To receive a copy of the Summer 2014 Marks Paneth Gotham Real Estate Monitor and/or to speak with a leader from Marks Paneth's Real Estate Group, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications, Inc. at Katarina@sommerfield.com or 212-255-8386.
The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of commercial real estate professionals in the New York City market. The 100 professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agencies, and attorneys and accountants specializing in the sector. The research employed self-administered questionnaires completed online by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of June 17 through July 11, 2014.
About Marks Paneth LLP
Marks Paneth LLP is an accounting firm with over 500 people, of whom 65 are partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle.
The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth, whose origins date back to 1907, is the 33rd largest accounting firm in the nation and the 10th largest in the mid-Atlantic region. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top three forensic accounting firms for the fifth year in a row.
Its headquarters are in Manhattan. Additional offices are in Westchester, Long Island and the Cayman Islands. For more information, please visit www.markspaneth.com.
Sommerfield Communications, Inc.