Posted by Leonard Steinberg on September 10th, 2013

FASHION WEEK in New York City is a reminder of how important this industry is to the welfare of our city. These fashion shows alone bring in hundreds of millions of dollars in production, venue rental, equipment rental, media, tech, travel and hotel revenue. While the fashion center has faded as a manufacturing zone, it is a global center for international powerhouse brands in the area of design, finance and marketing. New York City’s fashion industry employs 175,000 people, accounting for 4.8% of the City’s workforce and generates nearly $10 billion in total wages with tax revenues of $2 billion. Home to more than 75 major fashion trade shows plus thousands of showrooms, New York City attracts hundreds of thousands of visitors each year. Did you know that Carolina Herrera sells over $ 1billion of product annually?

The fashion industry has benefitted tremendously by the globalization of markets: emerging economies with newly created wealthy lusting for the latest fashions as an immediate means of displaying their newfound wealth fuel the coffers of New York. New York luxury real estate is a huge beneficiary of this industry: now more than ever I am seeing many fashion people buying high end properties, and its not just the lead ‘personality’ like a Calvin Klein or Donna Karan with the money: many key executives and employees are making large sums of money, especially when these companies go public. Think of the executives of Michael Kors buying at One 57. Many smaller brands are very profitable too.

The $6 billion sale of the Neiman Marcus group this week also highlights the importance of fashion retail, a massive employer in the City. Imagine the sales tax dollars Bergdorf Goodman alone produces every year…. again, a wave of employees at these retail giants are buyers of high end real estate. New York is also a catalyst for smaller newer brands: many have made their mark by opening stores in less obvious locations (Think Derek Lam on Crosby Street): the City has helped fuel their careers, but they in turn have helped gentrify neighborhoods, thus escalating the value of the surroundings. Remember when CHANEL opened in Soho? That store single-handedly opened up the possibility of living in Soho to a group of people who would have never even considered the neighborhood.

So while FASHION WEEK is scorned by many as superficial and self-indulgent (and in many ways it is: Rhianna as ‘style icon’ is surely an oxymoron?) we should be reminded how important the fashion industry is to all New Yorkers…..and luxury New York real estate.