The rent in SoHo is so damn high that even the Museum of Modern Art’s Design Store is being forced out.
The iconic shop, whose bestselling items include $500 Basquiat-printed skateboard “tryptichs,” has seen its rent triple to $2.5 million a year since it moved into the space 13 years ago.
The landlord, Patrick J. Cooney, did not return calls at press time. The building that houses MoMA’s shop — a 14,500 square foot tri-level space — also houses five residential luxury condos.
One of them, a four-bedroom, three-bathroom apartment, is currently in contract for $9.95 million.
The design store, at 81 Spring Street, is reportedly in negotiations to stay, according to Crain’s.
Across the street, Balthazar — one of the city’s most iconic restaurants — was about to be priced out of its space, at 80 Spring Street, until its landlord, developer Rodney Propp, made a deal.
“At the end of the day, I decided that they were too important to the fabric of the neighborhood, and ended up accepting a below-market rent so they could stay,” said Propp, who gave restaurateur Keith McNally a “subsidy” of around $500,000 a year to lease the space.
“Sometimes, though infrequently, it’s not about the last nickel,” Propp told the Post.
Landlords are able to command outrageous prices in SoHo because high-end luxury brand tenants — like Chanel and Louis Vuitton — now incorpoate marketing budgets into their real estate and retail rents, said David Zar, of Zar Property NY.
“Opening a flagship store isn’t necessarily about selling products anymore. It’s about creating a buzz for the brand. Instead of paying for a billboard in the sky, they’ll try to create hype through the flagship,” Zar said.
