Retail rents actually declining in New York

Something on the island of Manhattan actually declined in price? Hopefully this isn't a sign of the apocalypse. CNBC has reported that retail rents in New York are actually dropping, which has led to a new wave of retailers coming in.

Average rent prices in 12 of 16 main retail locations in New York fell in the past 12 months, according to a new report from CBRE. The average advertised rent fell by a little more than 12 percent to 658 dollars per square foot and landlords are more willing to take less, the commercial real estate services firm found.

Following the Great Recession, retail rents in Manhattan skyrocketed, resulting in brands halting plans for expansion or shuttering shops altogether. As vacancies become rampant in Manhattan, landlords are willing to make deals so they are no longer losing money on empty retail space.

Some companies already have plans underway to take advantage of these cheaper rents. Discount retailer Five Below is already planning on opening a Fifth Avenue store.

Midtown's Plaza District has been the most active area for rentals, followed by Midtown West, NoHo, and the Upper East Side. Apparel companies are in second place behind food and beverage companies for industries signing new leases in Manhattan.

"This is an opportunistic time, and rents have definitely softened," Faith Hope Consolo, chairman of Douglas Elliman's retail group, told CNBC. "There's nothing like a New York location. ... One store [in Manhattan] can make as much as a dozen suburban locations."

More affordable retail rents have not been a magic fix for Manhattan's vacant retail space problem though. According to CBRE, 143 spaces have been vacant for at least a year. Consolo told CNBC that there are more spaces vacant today in Manhattan than have been in the past ten years.

Slowly but steady they are looking to be filled though. Many e-commerce companies have begun seeking and renting retail space as they experiment with brick-and-mortar.