An interesting account minted from Catherine Isobe at Jonathan Bernstein Associates:

“As the financial services sector implodes, Manhattan retail may soon be facing Bank Branch Blight, according to Jeff Bernstein over at Urban Digs.

“The Chase/WaMu deal and Citigroup’s purchase of Wachovia could lead to 40-60 branch closings in NYC, and will press retail rents downward, unfortunately for landlords. Commercial real estate brokers will do more deals on these newly available storefronts, but how will this shift affect commercial landlords and tenants?

“A resurgence in retail (I mean stores with pedestrian appeal, not mega-chains like CVS), albeit at lower rents per square foot, could drive a recovery in the Manhattan economy, especially as we draw increasing tourist dollars from overseas shoppers. More and varied retail will also help keep New York City office space more desirable than space in the over-homogenized suburbs.

“Did we really need ATMs on every corner of Midtown in the first place?”