Fifth Avenue Looks for a U-Turn

Fifth Avenue property owners, in their quest to boost business along the upscale yet struggling Naples corridor, are seeking help from the man who helped transform it in the early 1990s into a vibrant district—Andrés Duany.

The group is coming together to personally fund the return of the influential architect. But this time around, Duany’s visit, if an agreement between the merchants and his firm is reached, would focus on the marketing and branding of Fifth Avenue. “We are not just looking for a nice report,” says Lou Vlasho, former interim chairperson of the Downtown Naples Association (DNA). “We are looking for specific steps so we can move forward.”

The challenge, as Vlasho points out, has been reaching an agreement among Fifth Avenue’s many diverse owners, each of whom has an idea of how things need to be done. However, they did all agree that bringing back a known entity like Duany was crucial to Fifth’s success.

The scope of the project, as outlined thus far, includes market research to define the typical shopper, identify Fifth Avenue’s competition, and determine not only a merchandising plan to get a handle on the type and size of businesses the avenue can support but also a targeted business recruitment effort.

Duany’s firm is pleased to be invited back. “We always like to be involved in projects that we have worked on and be involved in their success,” says Senen Antonio, director of business development at Duany Plater-Zyberk & Co.

Largely as a result of Duany’s influence, downtown Naples earned an image as a premier shopping and dining destination, but the recession has taken a toll. In an economic climate in which local business is needed to help bolster revenues, the prevailing perception among local residents is that the district is overpriced and geared mainly to visitors. And while restaurants and retailers try to lure residents with discounts and deals and the DNA aims to appeal to them with a host of new events, people are forming another perception: Longtime tenants are deserting the area because of the economy and high rents.

“Yes, tenants are hurting,” says DNA chairperson Cathy Christopher. “Businesses have closed and there are vacancies,” including such Fifth Avenue South fixtures as Congress Jewelers, Blue Mussel and Island Pursuit. But Christopher argues that there is more “jockeying and jiving” going on than leaving.

Lady from Haiti vacated a spot in the 400 block earlier this year when the lease was up and moved just one block off Fifth onto Park Street. Others, including The Name Game and Back of the Bay, moved onto Fifth Avenue from their previous locations off-Fifth. Still others, such as Casall, relocated from Waterside Shops to Fifth Avenue.

The majority of the vacancies are at either end of the avenue.

IPC commercial brokerage has more than 35,000 square feet of retail and office space available on Fifth Avenue, says leasing agent Paige Eber, and her office gets inquiries daily about the street. Even with competition from Waterside Shops, The Village on Venetian Bay and the new Mercato, Fifth Avenue’s charm and proximity to the beach keep it popular.

“There is only one main street in Naples and that is Fifth Avenue,” says Jeffrey Clapper, leasing and acquisition manager for the Courtelis Co., a leasing and management company that handles seven buildings on Fifth owned by BlackRock equity group. It has nearly 16,000 square feet of retail, office and residential available. “I want to maintain the local, downtown atmosphere, but a few national tenants here and there would be a real benefit,” he says.

In a study of Fifth Avenue’s current market conditions, including vacancies, lease transactions and asking rents, Courtelis found that, like the rest of Naples’ commercial market, Fifth Avenue has experienced a significant drop. In 2005 and 2006, it was not uncommon for Clapper to see retail space rent for $70 to $80 per square foot. Today, the same space might lease for $30 to $50 per square foot. Office space declined from around $35 per square foot to $18 to $20 per square foot. “Fifth Avenue pricing has come down to earth much like the residential market has,” Clapper says.

Fifth Avenue is now affordable to many who couldn’t consider it in the past, Eber adds, and landlords are implementing a host of incentives to fill spaces, including lower rents, free introductory rent and tenant improvement allowances.

Such enticements are helping close deals. IPC recently leased a 4,800-square-foot space to an Italian restaurant chain whose owners have more than 60 restaurants overseas and one in New York City. Naples will be its second U.S. location. Additionally, Clapper says he’s currently negotiating several deals that would encompass nearly 7,000 square feet of retail space. “It’s really encouraging and I’m very optimistic,” he says.

“We are not at a standstill. We are not going to pack up and leave. Things are happening and it’s only going to get better,” adds DNA executive director Lisa Swirda.