At $24,000/month for 2,350 SF, this is materially more expensive on a per-square-foot basis than the 3 West 35th Street office, but that is expected given the difference between street-level Upper East Side retail and office space.
Financial snapshot
- Monthly rent: $24,000
- Annual rent: $288,000
- Rent/SF/month: $10.21
- Rent/SF/year: $122.55
- Approx. cost per 1,000 SF/month: $10,213
The location is probably the strongest part of the offering. The property is on the east side of Second Avenue between 85th and 86th Streets, and the 86th Street Second Avenue subway station is essentially at the block, giving the location excellent pedestrian and transit accessibility.
The retail also sits at the base of a large residential component. Sources identify 1646–1648 Second Avenue with the Georgica, a 21-story, 58-unit condominium building, which provides a built-in affluent residential population directly above the commercial space.
From a retail perspective, the combination of 2,350 SF, roughly 38 feet of frontage, high ceilings and potential venting makes the space fairly versatile. Historical marketing specifically indicated that all uses were accepted and identified nearby retailers including Fairway Market, Chase, Shake Shack and AMC. Tenant mix will have changed since that older marketing, so I would verify the current neighboring businesses rather than relying on that list.
At approximately $123/SF/year, however, this is not inexpensive space. The economics make the most sense for a retailer, restaurant, showroom, medical/wellness concept, or other business capable of monetizing the strong Upper East Side residential density and Second Avenue visibility. For a lower-margin destination business that doesn’t depend heavily on pedestrian traffic, the $288,000 annual base-rent commitment could be difficult to justify.
The key issue I would investigate is whether the quoted $24,000/month is gross or net. If real-estate-tax escalations, CAM, insurance, utilities, HVAC, percentage rent, or other additional rent sit on top of the $24,000, the effective occupancy cost could be materially higher. I would also verify the current venting condition, permitted uses, frontage/signage rights, delivery access, and whether the landlord is offering free rent or a tenant-improvement allowance.
