National Retailers Entering the Sublease Market on the Rise

Over the last few months, the news has released reports of national retailers entering New York City’s sublease market as they re-evaluate their physical locations and look to sublease underperforming stores. Recent press delivered news of four planned closings by cosmetic brand M.A.C.—about 10,000 square feet in total; while fitness apparel brand Under Armour has introduced nearly half of its planned 5th Avenue flagship leased in 2016 at the GM Building, 767 Fifth Avenue. However, rising retail sublease inventory has provided an advantageous opportunity for digitally native brands and up-and-coming companies seeking to “explore having a brick-and-mortar business without the commitment of a long-term lease or having to build out a storefront.”