Luxury Giant Kering May Be Shuffling Retail Real Estate Deck

NEW YORK — It’s been more than a year since Gucci closed its doors at 840 Madison Avenue here and parent Kering still hasn’t divulged its plans for the 10,298-square-foot space. Gucci holds the lease and has the right to sublet through September 2018, according to real estate sources. Persistent reports have Kering installing Gucci sister brand Balenciaga in all or part of the store. When asked whether Balenciaga will open at 840 Madison Avenue, a spokeswoman at the brand’s Paris office didn’t deny the possibility, but said it was too early to talk about any plans. Real estate brokerage RKF is subleasing the former Gucci site on Madison Avenue between 69th and 70th Streets. The bi-level store has 2,801 square feet on the ground floor and 7,487 on the balcony. RKF noted that the space can be divided into two units, each with 1,400 square feet on the ground floor. Reportedly, finding a tenant has been difficult. Madison Avenue has suffered from a surfeit of empty storefronts in recent years. High asking rents are one reason, according to experts. However, the rise in inventory in the fall encouraged landlords to lower their asking rents by 11 percent to $1,433 a square foot, from $1,613 a square foot the previous year. Asking rent

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