NYC’s Third Avenue at UES leads from the retail center to a row of doctors and dentists
The doctor’s is on Third Avenue from Bloomingdale’s North to East 79th Street. So does the dentist, veterinarian and cryotherapist in your neighborhood. Once known for sportswear, the corridor now resembles a mile-long health and fitness fair rather than a traditional shopping street.
The twenty blocks along the middle-class (by Manhattan standards) spine of the Upper East Side now have three emergency care medical facilities, two dental clinics, and two pet veterinary facilities. Names include CityMD, MedRite and MyDoctor; Tend (“Look forward to the dentist”) and the yet to open Dntl Bar; and Small Door Veterinary and Bond Vet, which need no explanation.
There are also more than a dozen spas and “wellness centers”. They offer cryogenic treatments, hyperbaric chambers and esoteric skin cures. Even among the few true clothing retailers, the largest are fitness-centric, like Lululemon and Alo Yoga Sanctuary.
Unlike in the past, they are not hidden in upper floors or basements, but at ground level. Small Door Veterinary proudly announces itself with large signs in part of the long-vacant Grace’s Marketplace area.
CityMD was a pioneer before the pandemic, but was joined by other medical and wellness tenants as the 2020 pandemic crisis hit.Alec Tabak for the NY Post
The influx of sidewalk-level medical and healthcare products helped pull the Third Avenue retail market out of the doldrums. According to Cushman & Wakefield, asking rents between 59th and 79th Streets increased from $206 to $221 from Q4 2020 to Q4 2021.
More importantly, availability, which hit a recession-like 25.9 percent in the fourth quarter of 2020, has fallen to a more manageable 17.2 percent over the same period in 2021. New leases at the plants are likely to further reduce the vacancy rate.
CityMD was a pioneer before the pandemic, but was joined by other medical and wellness tenants as the crisis hit in 2020. The transition dramatically illustrates Manhattan’s evolving retail scene as landlords struggle to fill vacant storefronts.
Recent closures of large clothing stores like The Gap have left Third Avenue landlords with lots of highly visible empty square footage, leaving room for businesses like this Small Door Veterinary. Alec Tabak for the NY Post
Recent closures of large clothing stores like The Gap and American Apparel have left Third Avenue landlords with lots of highly visible empty square footage. Independent retail broker Stacey Kelz said that for medical and wellness tenants, “the larger spaces on Third Avenue in brick apartment buildings built in the 1960s and 1970s are more physically efficient than on First and Second, where there are many apartment buildings . ”
There is also a demand side. Steven Soutendijk of Cushman & Wakefield, who represented the landlord on the Tend lease, said, “The Upper East Side in the ’70s was the absolutely densest neighborhood and full of people willing to spend $100 to get their teeth brushed .
“They have a lot of disposable income post-pandemic to spend on their health, beauty and fitness. They have many dogs and cats. They need services that you can’t get on Amazon or the web.”
Landlords have warmed to the idea of street-level medical renters, like this Restore Wellness at 1320 Third Ave.Alec Tabak for the NY Post
Newmark’s Ross Berkowitz added that the new class of tenants reflect a younger mood and concern for well-being at a difficult time. “People want the best for themselves and their animals,” he said.
Not all landlords were initially enthusiastic about the idea of street-level medical tenants. CBRE broker Rob Bonicoro, who represented walk-in clinic One Medical on a new lease at 919 Third, south of Bloomingdale’s, said, “Maybe landlords preferred traditional retail tenants, but they’ve had to change their minds” as athletic apparel shoppers increasingly shopped online and when the pandemic kept people indoors. “Perception has also changed,” said Bonicoro. “These are beautifully designed rooms. They don’t look like old-fashioned doctor’s offices anymore.”