The Ongoing Miracle on Madison Avenue

The recent 25th Anniversary Miracle on Madison benefiting the Children's Aid Society capped a year that celebrated numerous noteworthy retail newcomers, landmark retail relocations and magnificent renovations, all burnishing one of the most glittering boulevards in the world.

Madison Avenue, of course, is the heart of the storied Upper East Side, one of the most affluent residential districts in the US. Not surprisingly, its retailers reflect that demographic: the world's foremost global brands and, increasingly, its legendary jewelers.

Madison Avenue today is the result of a transformation that began in 2009, as some tenants decamped for other parts of the city—or left altogether. This opened up a huge opportunity for a number of designers and international merchants, who took advantage of a very brief dip in rents to find a place on the Avenue. Since 2010, dozens of the world's great designers and brands have opened first-ever shops on the avenue, while still more have relocated elsewhere as they right-sized or perfected their locations. The result: Asking rates have now rebounded, ranging from $800 per square foot to $1,500 per square foot between 57th and 72nd streets.

Certainly, Madison's reputation as the "Glittering Mile" has been extended: Alexis Bittar, Buccellati, DeLaneau, Frey Wille, Girard-Perregaux, Hublot, Tamsen Z and Vacheron Constantin have joined relocating stalwarts Aaron Basha, David Webb and David Yurman in a virtual "Jewel Wars." To keep up, DeGrisogono and Mauboussin, both relatively new themselves, have completed major store renovations.

Fashion also continues to come to Madison. The complete list is too long to include here, but new entrants since 2010 include Agent Provacateur, Brunello Cucinelli, Comptoir de Cotonniers, Derek Lam, Escada, Fivestory, Hermes' for Men, J. Crew Bridal, Joe Fresh, Lederer, Monique Lhuillier, lululemon, Milly, MonnaLisa, Soigne K and Tory Burch. Others such as Paul + Shark, Lana Marks, Michael Kors, Bonpoint and Vilebrequin took advantage of retail's musical chairs as their own leases expired to find new locations on the boulevard. And as with the jewelers, Roberto Cavalli, Ralph Lauren and Longchamp, among others, undertook major renovations.

Other categories have found room to grow on Madison. They include art galleries (David Benrimon Fine Art, Freedman Art and Hermitage Restoration Studios), services (Ovando floral design) and food and beverage establishments (the Best Chocolate Cake in the World, Laduree, Premier Cru Wine Merchants and the Bel Ami Café).

And despite the dramatic amount of leasing over the last two years, there's still room for those seeking a Madison Avenue address. Coming soon are Celine, Cesare Attolini, dodo, Faberge, Liaigre, Luigi Borrelli, Marie-Hélène de Taillac, Perrin Paris, Salumeria Rosi and Zagliani.

Activity will continue in 2012, but the days of bargain hunting on Madison Avenue are long over. Rents will continue to rise, and I expect to see more stores taking locations on side streets off the Avenue. All are a sign of a rejuvenated Madison—and a revitalized New York.