## Manhattan Retail Corridors Show Leasing Strength, Rent Growth Remains Subdued
Manhattan’s retail activity in the second half of 2024 was fueled by a strong job market, near-record tourism, and steady return-to-office momentum, according to a report from the Real Estate Board of New York (REBNY). However, despite these positive trends, asking rents generally remained below pre-pandemic levels. Only six of the 17 retail corridors studied by REBNY saw rent increases compared to the first half of the year.
Leasing activity was particularly robust in the most competitive retail corridors. The period also saw notable retail investment transactions, including Blackstone’s acquisition of several prime SoHo properties, such as 61 Crosby St., 72-76 Greene St., 465 Broadway, and 415 West Broadway.
“More than two years into its recovery, Manhattan’s retail market is still quite balanced, underscored by expansion by top global brands and local mainstays, as well as retailers entering the market for the first time – all attracted to the resurgence of the city,” said Keith DeCoster, VP of market data and policy at REBNY. “The costs and challenges associated with setting up and operating a store remain daunting, but relative to prior cycles, rents remain reasonable in most cases.”
### Primark Signs Major Lease in Midtown
One notable deal during this period was Primark’s 78,760-square-foot lease at Vornado Realty Trust’s 150 W. 34th St. in Midtown Manhattan. This marks the retail giant’s first store in Manhattan, further signaling confidence in the city’s retail resurgence.
