Manhattan Retail Rents Stabilize, But Q2 is “Mixed Bag”
Average asking rents in Manhattan’s 16 prime retail corridors were stable in the second quarter, CBRE reported, ending 18 consecutive quarters of decline. However, the firm characterized retail’s recovery as “a mixed bag,” with residential neighborhoods ‘full and flourishing” while foot traffic from international tourists and office workers remains below pre-pandemic levels.
Leasing velocity totaled 2.4 million square feet, the third consecutive quarter in which the total surpassed two million square feet and the best quarterly total since Q3 2020. Velocity reflected a 50% improvement year-over-year and was 10% better than Q1.
Tenant activity has been bolstered by a focused interest in the best spaces in the market, which are becoming scarcer. “Despite the positive totals for Q2, the pipeline of future demand could take a step back as tenants take longer to contemplate their options or wait for new spaces to become available,” reported CBRE’s Nicole LaRusso.
