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NYC Prime Retail Availability Drops to Record Low
In Q2 2024, the average prime availability rate in New York City dropped to a record low of 15.3%, significantly lower than the 21% seen in 2019 and the peak of 28% in 2021, according to JLL’s Q2 NYC retail report. Madison Ave. recorded a steep decline in availability, falling to 5.3% from 16.0% in Q2 ’23. Lower Fifth Ave. also decreased to 11.3%, down from 21.0% a year ago. However, Upper Fifth Ave. saw an increase to 17.1% from a record low of 10% in Q2 ’23.
Average prime asking rents rose to $548 in Q2 ’24, up from $517 in Q2 ’23, marking a 5.9% increase year-over-year. Upper Fifth Ave. saw rents rise notably to $2,350, up 11.6% from Q1 ’23, while Madison Ave. increased by 11.0% to $971.
Despite higher hotel rates post-pandemic, tourism rebounded with a steady flow of international visitors, especially from Europe and South America. The suspension of Congestion Zone pricing for vehicles entering lower Manhattan and the trend of higher hotel costs offset by reduced retail and dining spending were notable developments.
- ◦Development
- ◦People
- ◦Economy
