Banks taking a realistic approach to rents

Date Published: 
Mar 24, 2009

Bank branches in Manhattan ;

Manhattan retail brokers say banks used to pay higher than normal rents for new branches in the city, as some made first offers that were higher than, and sometimes double, the asking rent. Lansco President Alan Victor said JPMorgan Chase created an artificial market for retail rents when it took space in the GM Building for $1,100 a foot three years ago. Chase, TD Bank and Bank of America fought over a site at Fifth Avenue and 14th Street, and Chase won it by paying $350 per foot at the location where the going rate was $250 to $275 a foot, Prudential Douglas Elliman's Faith Hope Consolo said. Now, Cory Zelnik, a principal of Zelnik & Co., said banks are taking a more realistic approach, and those still looking to expand are being more careful about costs. Cushman & Wakefield's Joanne Podell said the bank bidding wars for branch sites are over.

Publisher: 
Banks taking a realistic approach to rents