Financial
- Monthly rent: $60,000
- Annual rent: $720,000
- Rent per SF/month: $21.82
- Rent per SF/year: $261.82
- Approximate monthly cost per 1,000 SF: $21,818
- Lease length: To be confirmed / negotiable
The location is the principal attraction. Third Avenue near Union Square benefits from a combination of dense residential population, office traffic, NYU-related activity, restaurants, bars, and destination retail, making it a potentially strong location for a business that depends on substantial pedestrian volume and neighborhood visibility.
Compared with 150 West 49th Street, this property is more expensive on a normalized basis: approximately $261.82/SF/year versus $200/SF/year. Third Avenue is therefore about 31% more expensive per square foot, while also requiring a substantially higher monthly rent of $60,000 versus $35,000.
Compared with 54 West 56th Street, the difference is smaller but still meaningful. West 56th is asking approximately $237.53/SF/year, versus $261.82/SF/year here. Third Avenue is roughly 10% more expensive per square foot, although it provides more than twice as much space.
Compared with 273 Mott Street, the asking basis is also slightly higher: approximately $261.82/SF/year versus $246.58/SF/year. However, Third Avenue provides a much larger 2,750-SF footprint, making it more suitable for a substantial restaurant, flagship store, fitness/wellness concept, or larger-format retail operation.
The 2,750-SF size gives a tenant considerably more flexibility than the smaller NoLIta and Midtown storefronts you have been reviewing. At a $720,000 annual base rent, however, the business needs to generate significant revenue to maintain a healthy occupancy-cost ratio.
I would pay particular attention to ground-floor selling area, frontage on Third Avenue, ceiling height, basement inclusion, signage rights, HVAC, electrical capacity, loading access, bathrooms, and any real estate tax or CAM pass-throughs. At more than $260/SF/year, a large portion of the space should ideally be prime customer-facing ground-floor area rather than basement or ancillary space.
For restaurant or food use, I would separately verify venting, gas, grease traps, liquor-license feasibility, occupancy limits, and permitted use.
Overall, 123 Third Avenue is a premium-priced, high-visibility retail opportunity. The combination of a large 2,750-SF footprint and $60,000 monthly rent creates a substantial occupancy commitment, and at approximately $262/SF/year, it is more expensive than nearly all of the retail properties you have sent. I would only consider the asking rent compelling if the space has excellent frontage, strong pedestrian exposure, and a highly productive ground-floor configuration.
