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Fifth Avenue rings up globe's highest store rents

For the fifth year in a row, Fifth Avenue boasts the world's highest retail rents, according to a report released Tuesday by CB Richard Ellis Group Inc., which compared rents in the 20 priciest retail strips around the globe.
The retail rents on Fifth Avenue, on average, held firm at $1,900 a square foot in the third quarter of 2011. That was far above second-place Hong Kong, where rents averaged $1,695 a square foot. What's more, rents in the gilded strip of Fifth Avenue between 49th and 57th streets, which buoyed the avenue's overall numbers, averaged $2,318 a square foot—down 1% from the previous quarter.
“It's virtually flat,” said Andrew Goldberg, executive vice president at CB Richard Ellis. He noted that little has changed in the amount of space available on the market and that, even at those prices, Fifth Avenue may be a good bet for some retailers. “It's good branding to be on Fifth Avenue—you get your showcase in front of all the people that come to New York.”
Upper Fifth is still running strong, as evidenced by the recent activity on the street. Japanese fast-fashion brand Uniqlo opened a 90,000-square-foot store on the corner of 53rd Street last month, while Michael Kors and Swatch have both opened in the area recently. Meanwhile, luxury brands such as Dolce & Gabanna and Rolex have signed on for space on the northern reaches of Fifth Avenue as well.
On a global level, total retail rents ebbed just 0.6% between the second and third quarters. Though rents in areas such as the U.S. and Western Europe remained near flat, those in emerging areas such as China, India and Singapore saw significant growth.
“Asia has seen significant levels of occupier demand,” said Anthony Buono, executive managing director of retail services at CB Richard Ellis, in a statement.


Read more: http://www.crainsnewyork.com/article/20111115/REAL_ESTATE/111119926#ixzz1dnqbakOz

The Power of “Hello"

By Kate Edwards - Owner Kate Edwards Consulting LLC.

The Power of “Hello”

There is one word you do not have to teach your staff. It is “hello”. Hello has a power that is often overlooked. Imagine the last time you were in a restaurant, did they welcome you at the front door or did they just say “how many in your party?” or “did you reserve?”. While that may be perfectly direct, to greet someone with a proper salutation is one step up. It is a true welcoming moment and it sets us up for a civilized, pleasant, warm experience. How about at the table? Are you welcomed with “good afternoon?” or is it “do you want some tap water?”. Again the moment is direct but the aspect of hospitality has been lost.
I always share this moment with my classes. One evening I walked into my neighborhood Staples. It was about 5pm so was not yet the ‘after work rush’ part of the day. I followed 2 women through the door and as we entered I heard the cashier say “hello!” to the women ahead of me. They were taken by surprise and looked warily at one another. As we progressed into the store and past the line of cashiers we heard a chorus of “good evening!”, “welcome to Staples” and “hello” from every cashier on duty. The women ahead of me were clearly confused and almost unsettled. They were in Staples….not exactly a bastion of warm and welcoming service. Or was it? As we turned the corner a manager greeted me with “good evening Ma’am, may I help you find something?” I declined and took to the stairs. At the top of the stairs was another employee and again another “hello, may I help you?”
Now while the women in front of me were clearly put off by this effusion I had to say that part of the confusion was that none of us expected this friendliness in Staples. It was enthusiastic, warm, helpful customer service….not the usual experience when buying office supplies. And when I went to the checkout the response was equally enthusiastic and my experience ended with the last cashier nearest the door calling out as I left, “have a great night!”. Wow. I was blown away by the customer service at….Staples? And not only do I share this story with my classes but with other friends and colleagues. I thought to myself, “was this a fluke?” but no, the next time I went into the store it was the same and even in different outlets, the same customer attention. Wow.
So what did they provide for me? Was it free stuff? No. Was it more variety? No. Was it a fantasy-land of office supplies? No! It was acknowledgement. You are the customer. You are in our store. You might have questions. I am here for you. And how did they let me know that? By graciously saying “hello”! Wow, that was easy.
So why doesn’t every restaurant, store and airline do this? Many folks in the business call this “common sense”. But is common sense common? Nope, it is not. You have to create a language of common sense by working on each and every moment of the customer experience. One of the first things we must train our staff on is the greeting. In the training materials I write for my clients I always include a section on “Greeting” and one on “Good Bye” with an overview of the style of the language used as well as practical examples. Many restaurants do this and some of the big chains have a recognizable greeting that is issued to every guest. “Welcome to Chili’s” is a familiar byline and a major component of their advertising campaign. “Welcome to McDonald’s” is their credo and addresses both their guests and staff in their on-line materials.
What is important is that the greeting is authentic to you and your business. What is your brand? What do you represent to your guests and your peers? Your greeting is a big part of your brand identity and can represent verbally and hospitably your mission and core values. But what is great about establishing a greeting is that part of your mission will be lived out each and every moment of the day each time a staff member greets a guest. You have set the expectation and now ask that everyone meet it. But the truth is they won’t meet it if they are not sure what the expectation is, they simply cannot. So it is your duty to create and uphold your expectations each and every moment of every day. If you are diligent about living the mission and you insist that your staff do as well then you will have the opportunity to achieve your mission. And yes, it is that easy.

The Bronx Mall??? It's here and it's ready for biz!!

The Bronx's Bay Plaza Shopping Center is already 1.3M SF. Why not add another 630k SF? Prestige Properties is building the $270M enclosed Mall at Bay Plaza, attaching it to a 150k SF existing JCPenney. The new digs will include a 160k SF Macy's, which the developer expects will be a draw for other retailers. Breaking ground is spring 2012 and opening within two more years, and it'll serve four million residents within 10 miles. Oh, and there are plenty of places for Mom to park, with 1,800 spaces. reprint from Biznow.

ULI - Despite Availability of Capital, Commercial Real Estate Industry Facing Long Grind to Recovery, According to Emerging Trends in Real Estate® 2012 Forecast from PwC US and the Urban Land Institute

ULI - Despite Availability of Capital, Commercial Real Estate Industry Facing Long Grind to Recovery, According to Emerging Trends in Real Estate® 2012 Forecast from PwC US and the Urban Land Institute