New York City’s retail market is showing signs of improvement, with average asking rents and a taking rent index both increasing. This rebound can be attributed to the resurgence in international tourism as well as strong consumer demand. Despite this, the rolling four-quarter aggregate leasing velocity has decreased by 11% compared to last year.
Retailers are now looking towards secondary and tertiary markets for prime ground floor spaces in Manhattan’s premier shopping corridors that have become increasingly scarce. Health clubs and food & beverage tenants have been leading the charge when it comes to leasing activity, securing most of the square footage available on offer.
The number of direct ground floor availabilities in Manhattan’s top shopping areas has declined significantly; particularly within Upper Madison Avenue and SoHo Broadway corridors where high demand has caused availability levels to drop drastically . Overall, trends suggest a subdued optimism with positive indications but ongoing challenges still present throughout the retail market landscape .
