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Business

Gap sat to close his fifth Avenue store next month




Gap is getting ready to move out of his massive store on Fifth Avenue in New York, as the clothing retailer recently said he was considering fighting hundreds of places "aggressively" to focus on high-performing stores.

The three-level Gap store at 680 Fifth Ave. will close January 20, a CNBC spokesman said, refusing to comment on the reason for this. Special closure.

The news comes as retail rentals in Manhattan have climbed in recent years, with landlords willing to negotiate with tenants, but newer rentals have begun to cool.

As far back as three years ago, industry observers said that New York retail space rentals had reached "unsustainable" levels, according to real estate in New York. But this fall, average queuing rentals dropped by 1[ads1]5 out of 17 of Manhattan's most prominent corridors, REBNY said in its biannual report.

Part of the upper fifth avenue between 49 and 59 in the middle – where the Gap store sits – so rents fall 24 percent this fall, REBNY says, adding the average question of $ 2,973 per square meter.

Value dealer F ive Below opened its first store in Manhattan last month, right down the road from Gap on Fifth Avenue. It was a sign, real estate analysts told CNBC that the rentals were falling and would ask for a new wave of dealers to move into what had begun to become a vacant space.

A handful of specialty dealers, including Gap, have recently said they will take a more active approach to managing their real estate portfolios by closing stores or negotiating rental reductions where it makes sense. But the news has not heard the alarm bells among the retail market. At a recent ICSC conference in New York, the largest on the east coast, many landlords told CNBC that they expected fewer store closures across the US in 2019 compared to the previous year.

The news of the Gap store was first reported Tuesday by the New York Post.



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