Manhattan Retail Leasing Rallies Amid Strong Job Market, Tourism

Manhattan's retail leasing activity in the second half of 2024 showed significant growth, driven by a strong job market, robust tourism, and a resurgence in office workers returning to the city, according to the Real Estate Board of New York (REBNY). Notably, areas like Uptown Madison Avenue, Bleecker Street, and lower Fifth Avenue emerged as the most competitive retail corridors, with fashion brands accounting for 20% of major leasing deals. However, asking rents continue to remain below pre-pandemic levels, with only seven of 17 retail corridors seeing increases. Key deals included Brooks Brothers' return to the Financial District and immersive experiences like Monopoly in Times Square. Despite this growth, areas such as Times Square and Herald Square lagged in leasing activity. The report indicates that while the retail market is recovering, challenges remain, particularly regarding rental rates in most corridors.