H1 2025 Manhattan Retail Report: Sustained Market Fundamentals, Even As Headwinds Emerge

Demand remains steady and storefront availability falls in many corridors; brokers note a few retailers tapping the brakes on leasing due to economic and policy uncertainty

NEW YORK, NY –The Real Estate Board of New York (REBNY) today released its H1 2025 Manhattan Retail Report, which examines activity along major retail corridors in the borough from January to June 2025. The latest biannual study noted steady leasing across the borough with retailers proceeding with increased caution more recently in response to economic uncertainty. Average rents rose in many corridors and dwindling concessions have pushed many retailers to search beyond prime submarkets.

The average asking rent rose or was unchanged in eight out of 17 corridors surveyed in this report compared to H2 2024. Corridors with the highest jumps in demand were Broadway in Soho with 24.1% increase in average asking rents, Upper Fifth Avenue (49th Street-59th Street) with a 17% increase and Columbus Circle with a 14.9% increase. Several corridors posted declines due to the lease up of quality storefronts.

Top performing corridors through the first six months of the year reflected the core drivers of Manhattan’s retail recovery – steady regional labor markets and income growth, a luxury retail rally, resurgent tourism and steady return-to-office rates. Tenants requiri

ng larger retail spaces (fitness as well as arts and entertainment) have been active in Chelsea and Tribeca.
Luxury apparel and accessories absorbed most of the quality storefronts on Madison Avenue and in the heart of SoHo several quarters ago. Tenants have pushed to Upper Madison/East Side/West Side, the Plaza District and Park Avenue. Sustained daytime commuter activity combined with tourism attractions boosted foot traffic and leasing activity along corridors in Grand Central/Bryant Park, Midtown East and West.

Off and on tariff increases and the associated increases in economic uncertainty rattled consumer and business confidence in April and May. Brokers surveyed for the report noted a modest increase in retailers tapping the brakes on leasing decisions.

“Manhattan offers a unique synergy of culture, entertainment and art that can be found in only a handful of other cities around the globe,” said Keith DeCoster, Vice President of Market Data and Policy at REBNY. “A wide range of retailers from expanding domestic brands to those making their debut here continue to recognize the unique opportunity that a Manhattan presence affords them. So far, this is helping the retail rally push through tourism disruptions and uncertain trade policy.”

The full report and analysis, along with other studies on the New York City real estate market and industry by REBNY, can be found here.

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The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association. Founded in 1896, REBNY represents commercial, residential, and institutional property owners, builders, managers, investors, brokers, and salespeople; banks, financial service companies, utilities, attorneys, architects, and contractors; corporations, co-partnerships, and individuals professionally interested in New York City real estate. REBNY conducts research on various civic matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes, and other city, state, and federal legislation. REBNY regularly publishes market data, policy reports, and broker surveys. In addition, REBNY provides for its members: informational, technical, and technological resources; networking and charitable service opportunities; qualifying and continuing education courses; professional education programs, seminars, and designations; career-changing awards; legal advice; and a wide range of additional member benefits. For more information, please visit www.rebny.com.

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