Manhattan’s retail leasing market experienced a strong rebound in the second half of 2024, driven by a combination of factors, including a thriving job market, near-record levels of tourism, and a steady return to office occupancy, according to the Real Estate Board of New York (REBNY). This robust activity contributed to increased demand for retail spaces, particularly in key corridors. However, despite the positive leasing trends, asking rents in general have remained below pre-pandemic levels. In fact, only six of the 17 retail corridors studied by REBNY saw rent increases in the second half of the year compared to the first half.
The strongest leasing activity took place along the most competitive and high-demand retail corridors in Manhattan, where prime locations continue to attract both new tenants and established brands. This surge in leasing activity was matched by notable investment sales in the retail sector. A key transaction involved Blackstone’s acquisition of several prominent SoHo properties, including 61 Crosby St., 72-76 Greene St., 465 Broadway, and 415 West Broadway. These acquisitions highlight the continued investor interest in Manhattan’s retail real estate market, despite the rent challenges faced by some areas. Overall, while rent growth remained subdued, the market showed resilience with an uptick in leasing and investment activity, signaling confidence in Manhattan’s retail future.
*Article courtesy of Connect CRE
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