New York & Tri-State CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Manhattan Retail Rents Rise for First Time in 18 Quarters
The third quarter of 2022 marked a turning point for the Manhattan retail market, reported CBRE’s Nicole LaRusso. After 18 consecutive quarters of decline, the average asking rent in the prime 16 retail corridors saw a modest quarterly uptick of 2.2% to $607 per square foot, the first quarterly increase since 2016.
Manhattan’s prime corridors saw reduced vacancies in Q3, as the number of direct ground-floor availabilities dropped 5% from 241 to 229 spaces. Leasing velocity totaled 2.7 million square feet, the best quarterly total since Q3 2020.
“Improving conditions reflect the continued recovery of demand, as more workers returned to their offices post-Labor Day, and tourism and entertainment sectors also rebounded,” wrote LaRusso. “This good news was tempered, however, by rising interest rates and the prospect of a recession, as job losses and reduced consumer spending could put Manhattan’s retail recovery at risk.”
- ◦Lease
