In my last report for Fall, 2003, I wrote that it was the season for beginning in New York; that autumn was when things start up and that what was starting up was going to be good. And well, it was -- it was great! Sales kept getting better and better; life kept getting better and better. Even in the most beleaguered areas of the country, unemployment went down, business started to improve. It was party time on Wall Street. New York hadn't seen such a spectacular Holiday season in years! It was a very Merry Christmas after all…

New York City has returned as the capital of the World; the capital of Glamour. What all those hundred and thousands of visitors come to see and experience.

Glamour bespeaks Luxury and the Luxury market came back in a rush. Not only in those great bastions of the splendid: Fifth and Madison Avenues and 57th Street, and their younger cousin, Soho, but on the Upper East and West Sides, the West Village, and that outpost of scintillating hyper-sophistication, The Meatpacking District.

The sumptuous and lavish can be found in just about everything, from fashion, beauty, jewelry, and furs to hotels, restaurants, furniture, and bath tubs. After months of deprivation and being depressed, as the economy bounces back, there is the desire to have a little fun, to enjoy living, to indulge in the un-necessities. Shopping and shoppers are back. Luxury merchandise is consistently showing the largest increase in sales. We've got some money again and it's okay to spend it.

All this, and then, those incredible words on December 14th, "We've got him." The retail real estate market is strong, business keeps improving. 2004 is filled with promises, all of which will probably be kept.

On Fifth Avenue's Luxury Walk: Apple Computer is rumored to be opening in the concourse of the General Motors Building. Agnona is moving from Madison Avenue to 663 Fifth. In lieu of Boucheron, Bottega Veneta will have the space on 55th Street and Fifth. Piaget has unveiled their newly renovated store in the Crown Building. Gilan, a private jewelry salon, has also opened in the Crown Building. Zara has taken the North East corner of 54th Street. Façonnable has a grand new flagship at Rockefeller Center and 51st Street. American Girl Place has opened on 49th Street, across from Saks and at 48th and Fifth, Sisley has taken the old Benetton space, next to the new Benetton. Diego delle Valle plans to open a Fay shop sometime next fall.

On the Golden Mile of Madison Avenue: Nutrino has opened at 1184. There is an Exhale Mind and Body Spa at 980 and one at 150 Central Park South in The Hampshire House, as well. F.M. Allen is at 962; Malia Mills at 960. There will be a new Frederic Fekkai, sans Chanel, between 81st and 80th Streets. Barbour will be at 80th Street. Zitomers is expanding again between 75th and 76th Streets. Ann Ahn is at 957, also between 75th and 76th Streets.

Ralph Lauren is expanding on 71st Street, taking over the Alain Mikli space. F. M. Allen is opening, 962 Madison. La Perla is also expanding, taking the former Moschino shop at 803. 791 Madison will be the home of Dr. Nicholas Perricone's Cosmeceuticals. Giorgio Armani, 760 Madison, is expanding into the upper floors of the townhouse next door -- 762. LAI has reopened at 65th Street. There will be a Completely Bare Spa at Barneys, with its own entrance on 61st Street. Ciribelli Jewelry is at 609. Geox is at 595 Madison, as is Shoba Madison, second floor. Robert Marc moved to a larger store, from 575 to 551. The Dahesh Museum moved into its fabulous new space at 580 Madison and 57th Street. Spring Flowers is at 538. Talbots Men and Talbots Kids are now adjacent to Talbots Women on 54th Street, replacing the Gap. Asahiya Books and Mother's Work are coming to 360.

On 57th Street, the Crossroads of Luxury: At 5 East 57th Street, the new Faraone & Manella jewelry salon has opened and the Dior flagship has reopened, 21 East 57th Street. Buccellati has purchased the Holland & Holland brownstone at 50 East 57th to provide a larger and more beautiful setting for their jewels. Oxxford's Couture Collection will have a new salon across from the Four Seasons Hotel.

On West 57th Street, The Sharper Image is expanding, taking part of the retail space at 10 West, also home to MacKenzie Childs.

On the Upper East Side: Han Horse is at 973 Lexington Avenue. Jay Kos will have another store at 475 Park Avenue. JSA Furniture is in the Interior Design Building on East 61st Street. Socco will be at 118 East 59th Street, between Park and Lex. Bare Escentuals will open its New York flagship, 1140 Third Avenue at 66th Street.

The Upper West Side: Scarpe Diem is at 2286 Broadway. There will be a Games Workshop, Ltd., Broadway and 72nd Street. Kangol has opened in New York, 196 Columbus Avenue, between 68th and 69th Streets. Bed, Bath & Beyond will be at Broadway and 64th Street. Sisley is coming to The Time Warner Center. The Mandarin Oriental Hotel has just opened in The Center.

In the Flatiron District: Another Sisley will be at 133 Fifth Avenue, at East 20th Street. Home Depot is coming to West 23rd Street. Bluefly is at 43 West 24th. Elegance at the Flatiron --a Cipriani Restaurant -- 200 Fifth Avenue. There is talk of an Esprit shop in the Flatiron.

Aldo Shoes is coming to Union Square. Austrahan Homemade of Belgium -- chocolate -- is already there.

On Sixth Avenue: Original Penguin is at 42 West 39th, across from Bryant Park. The Container Store -- the first in Manhattan -- at 629.

In Chelsea: It is rumored that Crate & Barrel will be taking the old Buddha Bar space. There will be a new hotel -- the Maritime, at 363 West 16th Street. Utowa is on West 18th.

Another luxury hotel is scheduled for the Meatpacking District, near 859 Washington Street. DDC Lab will be opening soon and Salon Lounge is at 861 Washington. Scoop is at 873. La Perla will have a third store at 425 West 14th. Lucy Barnes is at 320 West 14th. Calypso will be opening in March, 652 Hudson Street. Annelore is at 636 Hudson. Thom Browne is at 17 Little West 12th and Shelly Steffee at 34 Gansevoort. Louis Vuitton may be soon be at 49 Eighth Avenue…

Soho is busier than ever: A hotel, (what else is new?) the Bond Street Hotel, is planned for 10-12 Bond Street at Lafayette. Dumbfounded is at 201 Lafayette; Vice at 252. H&M will be opening a second store at 515 Broadway, across from the new Bloomie's. Michael K is also at 515. Work in Progress is at 513, between Broome and Spring. Shobha Soho, 594 Broadway. A. Atelier is at 125 Crosby Street. Also on Crosby, the new Rebecca Norman/Ash Francomb boutique. M. at Mercer, 49 Mercer Street; Toys in Babeland, 43.

Jonathan Adler is at 47 Greene Street and Broome. Vivendum by Arredo, 23/25 Greene and Bisazza, 43. Steven Alan has reopened at 60 Wooster and Robert Danes is at 62. What Goes Around Comes Around, 351 West Broadway. Jurlique, 436 West Broadway. Calvin Klein Underwear is coming to 104 Prince. Kid Robot is at 126 Prince Street and the Delta Airlines Song in the City is at 98. There will be a new Foot Locker on Spring Street. Linus is at 180 Spring and Amore Pacifica at 114. Sylvia Lee Zion is at 93 Grand Street and Liore Mannes is at 91. Sublime is at 26 Varick. Esprit may also come to Soho.

Noho is home to Victoria Keen, 357 Lafayette Street.

In Nolita, there's Rebecca Taylor, 260 Mott Street and Tina Tang, 260 Mulberry. Ulla Bezant is at 6 Spring and Duncan Quinn at 8. Karikter is at 19 Prince, between Mott and Elizabeth.

In the West Village, Ralph Lauren will open a men's store at 381 Bleecker Street. The women's store is already open at 380. Geminola is at 41 Perry Street. Sant Ambroeus is at 259 West Fourth at Perry Street. There's another Cynthia Rowley at 376 Bleecker, between Charles and Perry. Kaas Glassworks is at 117 Perry Street. The Body Shop renewed their lease at 747 Broadway. Nom de Guerre is at 640 Broadway and Bleecker. Another Sisley -- 753 Broadway and Eighth St. Paul Berman has opened at 30 Vandam Street. Gucci may be joining Ralph on Bleecker.

In Tribeca, Johnson & Hicks has opened at 100 Hudson Street. And the big news is, what else -- a hotel, which will be on Greenwich and N. Moore Streets and is slated to open in 2005 -- this one to be built by Robert De Niro.

In the Financial District: GNC will open at 2 Broadway and Starbucks and Aerosoles both have new leases. Banana Republic will be in the Winter Garden at The World Financial Center. Darling is at One Horatio Street. Archipelago, 38 Walker. L'Express will have a wonderful new store at 7 West 34 Street. Nine West is at 21 West 34th.

On Times Square, Cipriani is planning an exciting new venue in the Liberty Theater.

Jared M's new store will be in the Garment District, near Madison Square Garden.

At 109 Third Avenue, Kiehl's, since 1851, has expanded to the corner. Ro is now at 267 East 10th Street. Mashin is at 177 Orchard.

That's Faith for Winter, 2004 -- a great beginning to a great New Year.

Faith Hope Consolo
Chairman, Retail Leasing & Sales Division
Prudential Douglas Elliman
Tel: 212-418-2020 / Fax: 212-418-2005