In the third quarter of 2023, CBRE’s report reveals that Manhattan’s retail market is experiencing an upswing. Prime retail corridors have seen a continuous increase in average asking rents for five quarters, reaching $663 per square foot – a 2.7% rise from the previous quarter. The taking rent index in these areas has also shown growth, rising to 80%, which is an increase of 120 basis points from Q2 and 780 basis points from the same period last year.
Despite some challenges with supply for top-tier locations, demand for prime retail spaces remains strong. Popular areas such as SoHo and Grand Central are seeing high levels of leasing activity. Apparel retailers have been particularly active in leasing, accounting for over 156,000 square feet leased across nineteen transactions.
Overall, there is guarded optimism and a positive outlook within Manhattan’s retail market due to these promising trends.
