Manhattan’s retail market ended 2023 with strong momentum, fueled by a resurgence in international tourism and high demand for luxury goods. According to CBRE’s Q4 Manhattan Retail Figures report, the availability of ground floor spaces decreased by 4% in the fourth quarter, totaling 195 and leading to higher prices. Prime retail corridors saw an average asking rent of $669 per square foot, marking a sixth consecutive quarterly increase and a year-over-year rise of 9%. However, this still remains significantly lower than peak levels seen in 2014.
The leasing velocity over the past four quarters was around 2.8 million square feet – a slight slowdown of just six percent from the previous quarter but down by fourteen percent compared to last year at this time. This decrease can be attributed to limited availability in prime locations and lingering effects from elevated interest rates on new site acquisitions – indicating an overall trend towards top-tier retail leasing.
This update on Manhattan’s retail market showcases continued growth and stability despite some challenges faced throughout the year.
