Island of Stability on Madison Avenue

rent holds firm at 804 Madison, despite skid elsewhere on Tony strip.

By Adrianne Pasquarelli

In recent months, rents along the gilded 25-block stretch of Madison Avenue beginning in the high 50s have tumbled by more than 30% in many cases—but not all. At 804 Madison Ave., between East 67th and East 68th streets, a 1,500-square-foot space recently rented for near the asking price of $700 a square foot to upscale apparel store Hervé Léger, a BCBG Max Azria Group brand.

Bruce Spiegel, the Rose Associates Inc. broker who represented landlord Storepark in the transaction, says the site’s prior tenant, linen purveyor Léron, paid a similar rent.

“Rents are site-specific and landlord-specific,” said Mr. Spiegel. He also noted that the space, even though it is in a prime spot on Madison Avenue, has its drawbacks, too—including street frontage of a mere 12 feet.

Hervé Léger, which signed a five-year deal, expects to open for business by the end of this month. It is relocating from a location farther south on Madison, where its lease has expired.

Candice Dobbs of Dobbs Associates Inc. represented Hervé Léger.

Property Details
Tenant name: Hervé Léger
Street address: 804 Madison Ave.
Square feet: 1,500
Asking rent: $700 per sq ft.
Lease length: 5 years
Market: Uptown
Submarket: Upper East Side
Borough: Manhattan
Brokerage firm: Rose Associates Inc.
Landlord broker: Bruce Spiege;
Tenant broker: Candice Dobbs

Copyright @ 2004-2007  Dobbs Associates, Inc. All rights reserved.