Robin Abrams had been in on-and-off negotiations for more than a year to sign a grocery store to a 7K SF lease for retail space on Manhattan’s Upper East Side. Until Tuesday.
That’s when Abrams, the vice chairman for retail at Compass in New York City, learned that the grocer had backed out of the deal, citing concerns over rising costs of food and materials to build out the store.
As more retailers come to grips with the impact of sweeping new tariffs, Abrams is concerned that plenty of other potential tenants might make similar U-turns.
It has been three weeks since President Donald Trump sent markets into a tailspin with the announcement of the most aggressive tariff regime in nearly a century of U.S. trade policy.
Stock prices and bond yields have been jittery ever since, and consumers are already starting to slow their spending as they anticipate rising costs. And while real estate historically moves slower than other asset classes, retail market watchers say the tariffs and broader economic concerns are already making would-be tenants hesitant to commit to leases.
Click here to read the rest of the article written by Jeff Liguori over at Businesswest
