Development Drives West Side Retail

In Manhattan, five of the 10 submarkets with the highest asking rents are along the west side of the island. That’s an indication that increased office leasing and new residential development is driving retail value up. “Demand for amenities should continue to grow, as product delivers and employees move in,” according to research from JLL.

The top two markets are still established leaders, however: the Upper East Side, and Central Midtown.

The highest retail rents are still concentrated in a few places. Rental rates for 72% of listings and 72% of comps from the first half of 2017 fall below the Manhattan averages ($325 per square foot and $358 per square foot, respectively). Less than 4% of listings and 6% of comps have rents above $1,000-per-square-foot for ground floor space.

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