This is a substantially higher-rent retail opportunity in a strong Upper East Side location. At approximately $155/SF/year, the asking basis reflects the value of a Third Avenue storefront in the dense Yorkville residential market rather than the lower office-oriented rents seen in Downtown Manhattan.
The property is located on Third Avenue between East 88th and East 89th Streets, in the Yorkville section of the Upper East Side. The building is a prewar mixed-use property with residential apartments above street-level commercial space; public property information classifies it as C7 — walk-up apartments with stores, which is consistent with the advertised retail use.
Financial
- Monthly rent: $22,000
- Annual rent: $264,000
- Rent per SF/month: $12.94
- Rent per SF/year: $155.29
- Approximate monthly cost per 1,000 SF: $12,941
- Lease length: To be confirmed / negotiable
The location is one of the stronger aspects of the opportunity. Third Avenue provides a heavily developed residential and commercial corridor, giving a retailer access to the surrounding Yorkville and Carnegie Hill population as well as pedestrian traffic generated by nearby restaurants, services and neighborhood shopping.
Transit access is also strong. The 86th Street 4/5/6 station is approximately 0.15 miles away, while the 86th Street Q station is approximately 0.18 miles away, putting both Lexington Avenue and Second Avenue subway service within a short walk.
From a retail perspective, the economics are considerably more aggressive than the downtown office alternatives. At $264,000 in annual base rent, this is not a value-oriented space in absolute terms; the justification has to come from storefront exposure, pedestrian activity, neighborhood demographics and the revenue potential of a Third Avenue retail location.
The 1,700-SF footprint is a useful size for a restaurant, specialty retailer, fitness/wellness concept, medical or service business, depending on the actual configuration and permitted use. However, at nearly $13/SF per month, efficient use of the entire footprint becomes important. Any basement or lower-level area included in the advertised 1,700 SF should therefore be identified, since paying the same blended asking rent for non-selling basement space would materially change the effective economics.
There are also several details I would want clarified before evaluating the $22,000 asking rent: actual ground-floor square footage, frontage on Third Avenue, ceiling height, basement inclusion, existing HVAC and utility infrastructure, venting capability if food use is contemplated, property-tax/CAM obligations, and whether possession is delivered vacant and in usable condition.
Overall, 1577 Third Avenue is a location-driven retail opportunity rather than a low-cost space. The neighborhood and transit access are strong, and the building’s classification supports its mixed residential/retail character. At $155.29/SF/year, however, I would want the storefront to offer very good frontage and visibility—and preferably a highly usable ground-floor configuration—to justify the $264,000 annual commitment.
