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Manhattan Retail Rents Up for Sixth Consecutive Quarter
Manhattan’s retail market finished on a stronger note in 2023, driven by revived international tourism and robust luxury goods demand, according to CBRE’s Q4 Manhattan Retail Figures report.
Directly available ground floor spaces reduced by 4% in Q4, totaling 195, contributing to improved pricing. Average asking rent in prime retail corridors climbed to $669 per square feet, marking the sixth consecutive quarterly increase, a 1% uptick from the prior quarter, and a 9% rise from a year ago. Despite these consistent gains, it remained 40% below 2014’s peak levels.
The rolling four-quarter leasing velocity reached around 2.8 million square feet, marking a slight 6% slowdown from the previous quarter and a 14% decline compared to the same period last year. This deceleration reflects diminished availability in prime locations and lingering impacts of elevated interest rates on new site acquisitions, showcasing a “top down” trend in retail leasing.
- ◦Development
