New York City’s prime retail market closed 2025 at its tightest point on record, with availability falling to a historic low of 13.7% for the fourth quarter of 2025, JLL reported. Demand was concentrated in top corridors such as SoHo, which dipped below 10% availability for the first time.

In its Q4 2025 report, JLL found that annual prime asking rents climbed 6.7% year over year to $584 per square foot, led by SoHo at 25% Y-O-Y gains. The growth underscored strong retailer confidence supported by robust tourism and better-than-expected holiday sales.

“Prime New York retail fundamentals remain exceptionally strong, driven by sustained demand and a chronic lack of quality supply,” said Patrick. A. Smith, vice chairman, retail brokerage, JLL. “In core corridors, well-located space is leasing quickly, pricing is resilient and decision-making has become far more strategic as tenants compete for fewer opportunities.

“Looking ahead, we expect this supply-demand imbalance to persist into 2026, particularly in top-tier submarkets where new inventory is limited,” he continued. “Retailers that succeed will be those who plan earlier, move decisively when the right space becomes available and align real estate decisions with long-term brand strategy, ensuring that their physical footprint reinforces visibility, customer experience and growth objectives rather than reacting to short-term market pressures.”