Retail Rents are Too High in NYC

Though rents are falling in many retail districts of Manhattan, New York City’s problem with retail is not nearly as serious as the problems with retail in the rest of the country.

The city’s retail sales have grown for seven straight years, with robust demand supporting a large, diverse landscape of retailers. However, the asking rents for retail spaces have gotten ahead of even that robust growth in sales in many retail corridors, according to the latest New York City Retail Viewpoint from CBRE.

“While local demand fundamentals remain on solid footing, getting back to market stability will require downward rent adjustments along some retail corridors,” said Nicole LaRusso, director, research and analysis, CBRE Tri-State.

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