By now, everyone agrees that New York’s retail market is in trouble. But is it just a temporary dip, or is the market facing a more permanent crisis? Vornado Realty Trust CEO Steve Roth thinks it’s the former.
“My belief is that the softness in New York is cyclical,” he said during Vornado’s quarterly earnings call Tuesday. He was more concerned over the U.S. retail market outside the Big Apple, which he sees in a cyclical downturn.
“The country is vastly overstored,” he said. “Growth will not solve this problem. There has to be an evaporation of a vast amount of retail space.”
Roth’s comments echo his annual letter to shareholders earlier this year, in which he argued that retail’s struggles “will also create enormous opportunity for those with the capital and management platforms to feed on the carnage.”
In Manhattan, retail properties with…