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MADISON AVENUE STILL NO. 1 CHOICE

Although malls are busy chasing luxury tenants, New York City’s Madison Avenue has no problem attracting them. In fact, luxury brands want to establish a presence in the city’s toniest shopping district — between East 55th and East 72nd streets — so badly that they are even willing to forgo profits, says Todd Bassen, senior vice president of New York City-based Vornado Realty Trust. Vornado recently paid $113 million for a 17,000-square-foot stretch of retail space on Madison Avenue between East 69th and East 70th streets, tenanted by Cartier, Chloé and Gucci. Rents in the district average about $1,000 per square foot, making it hard to post a profit, even for retailers selling $3,000 handbags. “Madison Avenue tenants don’t make money,” Bassen said. “It’s more about a brand statement every luxury retailer needs to make.”