Dive Brief:
- Apparel retailers made up nearly half (48%) of overall prime corridor leases in 2023, up from 35% last year, according to a new JLL report. Prime urban corridors are nationally recognized shopping districts that are known of its mix of high-street, national and international tenants.
- Athleisure retailers hold 21% of new apparel leases this year, a trend that could be attributed to the rise in remote and hybrid work, per the report. Lululemon, Alo Yoga, Vuori and Hoka have recently leased new locations in cities like Toronto, Washington, D.C., Miami and San Francisco.
- Luxury boutiques have 12% of the new luxury leases in prime corridors this year. High-end boutiques like Elyse Walker, Kirna Zabete, Kith, Kitson and Opal & Oak have signed new leases in cities such as New York, Miami, Los Angeles and Boston.
Dive Insight:
The rebound of prime urban retail leasing is in part to the rise of international travel and the return of office workers, according to JLL. In addition to athleisure, apparel and luxury boutiques, jewelry businesses have also been eyeing optimal retail spaces. Jewelry retailers comprised 11% of this year’s prime corridor leasing.
For Lululemon, the investment in brick-and-mortar stores follows notable revenue gains. In Q2, the company reported an 18% jump in revenue from last year to $2.2 billion and double-digit profit growth. The company also announced that it was increasing its store opening plans, with five more new net stores this year than it previously expected.
Vuori also continued to grow its offline reach by opening new stores in 2023. The company debuted its 48th store in Washington, D.C., last month and said it planned to open more stores in New York, Texas and Florida. The brick-and-mortar expansion is part of its goal to open 100 locations by 2026 and expand into international markets.
Besides Vuori, prime urban corridor Washington, D.C., has attracted other direct-to-consumer brands like Everlane, Allbirds and Outdoor Voices. The openings follow a trend of DTC brands looking beyond markets like New York City to gain new customers.
