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Manhattan Retail Leasing Gains, but Rents Continue Decline
The Manhattan retail market showed signs of improvement in the fourth quarter of 2021, CBRE reported, notwithstanding supply-chain disruptions and the spread of the Omicron variant. Leasing velocity increased, and the number of direct, ground-floor availabilities in Q4 decreased to 266 spaces from 282 in Q3, in the 16 prime retail corridors tracked by CBRE.
The average retail asking rent in Manhattan’s prime 16 retail corridors dropped a modest 1.2% to $597 per square foot in Q4, CBRE’s Nicole LaRusso reported. Yet, this marked the 17th consecutive quarterly decrease, and pricing remains at levels not seen since 2011.
“As the window for generous concession packages and flexible lease terms begins to narrow amid an improving economy, many opportunistic retailers have focused on a flight to quality strategy, taking advantage of the tenant-favorable market conditions to reposition themselves or penetrate new markets,” wrote LaRusso.
- ◦Lease
