34th Street retail healthy, report says

Real Estate Weekly, Oct 24, 2001

The 34th Street retail business climate remains healthy, according to the 2001 Annual Retail Inventory, recently published by the 34th Street Partnership. The yearly survey revealed that the current retail vacancy rate stands at 3.74%, a strong indication that the famed shopping district is holding its own during a weakening economy.

According to the annual retail inventory, 535 retail establishments are located within the 34th Street Partnership's borders, which stretch from Park Avenue to 10th Avenue. Of these, only 20 were vacant at the time the survey was conducted. The report, compiled by Dan Pisark, vice president of retail services for the partnership, states, "shopping remains a strong and vital activity on 34th Street."

In particular, Pisark cited the planned addition of a second H & M store on 7th Avenue and-34th Street and a second Victoria's Secret, as strong indicators of major retailers' confidence in the district. In addition, Ann Taylor Loft will occupy the vacated Disney Store, and Modell's will open a new 28,000 SF store in the Herald Center before the end of the year.

Of the 535 retail spaces surveyed, 152 were classified as "eating and drinking establishments," 120 as "apparel and accessory stores," and 40 as "miscellaneous retail." Some of the remaining categories include "personal and miscellaneous services," "paper goods and printed or recorded material," "financial institutions," "electronics," "food stores," and "hotels."

Pisark said the new Pennmart residential/commercial mixed-use tower just west of 8th Ave. will include a multi-screen movie theater, a welcome addition to the district. "There hasn't been a movie theater on 34th Street in eons," he said.

In addition, Pisark noted that the partnership has already embarked on an effort to woo major developers to the north side of 34th Street, between 7th and 8th Avenues. This retail stretch, opposite One Penn Plaza, is an area that is ripe for office and retail development.