- Employment
- New York City “Fashion Industry” employment, which includes
Textile and Apparel Manufacturing, and Apparel Wholesaling, is currently
(4th Qtr 2002) 81,365. This is a drop of 7.1% from 2001. The manufacturing
(Apparel and Textile) portion of the “Fashion Industry”
is currently 41,394, well below the 2000 total of 67,734, a decline
of 26,340 persons.
- Manhattan “Fashion Industry” employment in 2002 was
58,877, a decline of 4.8% from 2001. The manufacturing portion of
the “Fashion Industry” represented 38.6%, or 22,758. This
represents a decline of 9.3% from 2001. The “Fashion Industry”
Wholesaling sector declined slightly from 36,755 to 36,119 between
the 4th quarter of 2001 and 2002.
- Employment during the year 2002 for the “Fashion Industry”
within the Fashion Center BID (i.e. Zip Code 10018) is estimated to
be 27,652 significantly lower than the 1999 figure of 37,118, and
slightly lower than last year’s figure of 29,920. Fashion wholesale
employment in the Fashion Center BID was 17,864, up from the 2001
figure of 17,792. “Fashion Industry” manufacturing employment
in the BID totaled 9,788 employees in 2002, down 19.3% from 12,128
in 2001.
- As of the 4th quarter 2002, the “Fashion Industry” currently
represents 33.5% of the total employment in the BID, its lowest level
ever.
- Economic Impact
- Total value added for the Apparel and Textile manufacturing sector
in New York City, was $4.0 billion, a drop of 13% from the 1992 reporting
in real dollar terms and a more significant decline in inflated dollars.
- Total wholesale sales in New York City were $40.1 billion in 1997,
the last reported year, up from $38.6 billion in 1992. This was an
increase of only 3% since 1992, well below the inflation rate for
that time frame.
- Direct “Fashion Industry” payroll in the entire city
was estimated to be $5.6 billion in 2002, a 7% increase from 1999,
but less than the rate of inflation.
- Retail Market Profile
- There is approximately 1.63 million square feet of retail space
in the BID. The vacancy rate is about 12.3%, about the same from last
year. Most of this vacancy is along the side streets and there are
many retail spaces currently under renovation for redevelopment that
has increased the vacancy rate.
- Retail sales volume is estimated between $650 - $700 million, however
many of the retail apparel and fabric stores do a large wholesale
volume as well.
- The current resident market has $152.7 million in retail potential,
up due to both population and income increases. The employee market
has $944 million in potential also up due to new office developments
in the area.
- Market growth will increase demand for an additional 180,000 square
feet of retail space, and the untapped potential if recaptured, can
support another 170,000 square feet of space.
- Real Estate Profile
- Total space availability rose substantially from 3,464,000 square
feet to 3,714,000 square feet. This raised the availability ratio
from 13.8% to 14.5%. The increase in availability was across the board.
Avenue buildings went from 2,100,000 square feet to 2,339,000 square
feet and Side Street buildings, which actually decreased slightly,
went from 1,539,000 square feet to 1,381,000 square feet. This increased
availability from 13.1% to 13.8% in Avenue Buildings and from 15%
to 16% in Side Street Buildings.
- Office rents have either declined or held steady. Side Street Buildings
have an average asking price of between $19.25 - $22.50 per square
foot, although some are asking upwards of $35 per square foot. This
is down from between $23.00 - $25.50 in the last survey. The Avenue
Buildings have an average asking price of between $26.50 - $31.50
per square foot, although some are asking upwards of $48.00 per square
foot. This is virtually unchanged from last year’s survey which
was between $26.50 - $31.00 per square foot. Asking rents don’t
always reflect the underlying status of the market where fewer transactions
have been taking place and a variety of concessions are being offered
in order to offset rental prices.
- Retail rents are still quite high. Broadway ranges from $110 -
$266 per square foot; Seventh Avenue from $70 - $120 per square foot;
Eighth Avenue from $90 - $120 per square foot and the side street
locations from $30 - $80 per square foot.
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