Manhattan Retail Seeing Signs for Optimism
Manhattan’s retail market is finally seeing the light at end of the tunnel with the reopening of indoor dining, malls, arts and entertainment and sporting events, along with the rapid acceleration of vaccinations, CBRE reported.
“After facing many challenges for over a year due to the global pandemic, retailers and consumers are finally seeing signs for optimism,” said Nicole LaRusso, CBRE senior director, Research & Analysis. “The acceleration in vaccinations as well as the additional federal stimulus should reinvigorate in-store spending in Manhattan in the months ahead.”
That being said, leasing velocity in Manhattan decelerated again during the first quarter of 2021, marking seven consecutive quarters of decline and increasing the number of available spaces in Manhattan’s 16 prime retail corridors from 264 to 275. As a result, the average asking rent in these retail corridors dropped 13.4% year-over-year and 5.1% quarter-over-quarter to $618 per square foot.