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CBRE: Manhattan Retail Rents Rise for Fourth Consecutive Quarter
New York City’s retail market is seeing signs of improvement, with increased average asking rents and a higher taking rent index, according to CBRE’s Q2 2023 report. The market has benefited from a rebound in international tourism and strong consumer demand. However, the rolling four-quarter aggregate leasing velocity has decreased by 11% compared to the previous year.
Retailers are now looking at secondary and tertiary markets as prime ground floor spaces in Manhattan’s premier shopping corridors have become scarcer. Health clubs and food & beverage tenants have been driving leasing activity, with health clubs securing the most square footage.
The number of direct ground floor availabilities in Manhattan’s top shopping areas has declined, particularly in the Upper Madison Avenue and SoHo Broadway corridors, where strong demand has contributed to a decrease in availability. Overall, the retail market shows subdued optimism with positive trends but ongoing challenges.
- ◦Lease
