What Google’s Decision Not To Move To Soho Means For Retail & Greene Street

Crain’s New York article popped up on my newsfeed two days ago about the Google decision to not open its retail flagship in Soho.  Google was planning to open up its first retail flagship around the corner from the Soho Apple store at 131 Greene Street.  The leased was signed {in a Fortune article} during May 2014.

AR-151109989

Over this past year, retail rents around the neighboring space have increased.  Landlords figured they could find tenants willing to pay more.  As a result, many stores have moved off the block when their leases came up for renewal.

I predict over the next year, there will be even more empty retail spaces on Greene between Prince and Houston.  While asking prices on this block will remain stabile (high!), retailers looking to move to Soho might have a better chance of negotiating a lease on this block.

Another empty retail space is up for grabs:  Google is now looking to sublease its space, at $2.25 million per year.  For 5,400 square feet, $416 per square foot is an especially high price for a retail store to pay on a block with very little foot traffic!