New York & Tri-State + Downtown New York + Retail | January 17, 2023

Manhattan retail improved across all major metrics in 2022 when compared to 2021, CBRE reported

Manhattan Retail Leasing Improved in 2022, Yet Challenges Remain

Manhattan’s retail market improved during 2022 along all major metrics compared to the prior year, CBRE reported. The rebound in tourism, demand in the entertainment and luxury sectors and a return to normalcy during the holidays propelled the New York retail market to a better position than in 2021.

During the fourth quarter, average asking rents in the prime 16 retail corridors saw a modest 1.2% uptick to $615 per square foot. That represents the second consecutive quarterly increase.

Leasing velocity improved 11.6% annually to 2.5 million square feet, but showed signs of slowing down in Q4, when it declined 9.7% from the prior quarter’s total. “While the market exuded positive momentum in Q4, economic headwinds are expected to present a challenge over the next several quarters, which could slow or halt progress in New York’s retail landscape,” according to CBRE.

Pictured: 489 Broadway in SoHo, where footwear brand Dolce Vita signed a lease in the fourth quarter of 2022.

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CBRE New York City

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).