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New Retailers Drive Manhattan Leasing Amid Rent Increases
Manhattan’s retail market saw average asking rents rise to $716 per square foot, a 4% increase from the previous quarter, marking the eighth consecutive quarterly rise, according to CBRE’s Q2 Manhattan Retail Figures report.
The taking rent index for prime retail corridors improved to 79.6%, up from 78.3% in the prior quarter and 78.8% a year ago. Available ground floor spaces in the top 16 shopping corridors decreased by 2% quarter-over-quarter, totaling 181, a 10% drop from the previous year.
The rolling four-quarter aggregate leasing velocity reached 2.5 million square feet, down 9% from the last quarter and 21% year-over-year. Despite sustained demand driven by tourism and a robust labor market, high costs and limited supply slowed leasing activity. Gov. Hochul indefinitely suspended the congestion pricing program, initially set for June 30th, due to affordability and sustainability concerns.
- ◦Development
