New REBNY Report Finds Manhattan Retail Momentum Extending Beyond Prime Corridors in First Half of 2026

Food, fitness, luxury and digitally native brands fuel continued retail growth across Manhattan

NEW YORK, June 25, 2026 — The Real Estate Board of New York (REBNY) today released its H1 2026 Manhattan Retail Report, which examines activity along major retail corridors across the borough during the first six months of 2026. The biannual study found that Manhattan’s strong retail recovery continues, driven by a mix of international luxury brands, expanding local operators, ecommerce companies, restaurants, fitness concepts, and experiential retailers.

Demand remains strongest in Manhattan’s premier shopping corridors, where available storefronts are being leased rapidly. SoHo and Madison Avenue now have fewer than 20 actively marketed spaces, while Lower Fifth Avenue, Bleecker Street and parts of Flatiron have only a handful of quality options remaining. At the same time, leasing activity is spreading beyond traditional retail hubs into residential neighborhoods and emerging districts.

Asking rents increased in 8 of the 16 corridors tracked in the report, while availability continued to decline in many of Manhattan’s most competitive locations. Despite recent gains, rents remain far below their 2016 highs, leaving room for future growth.

“Manhattan’s retail market continues to demonstrate remarkable momentum,” said Keith DeCoster, Vice President of Market Data and Policy at REBNY. “Luxury brands, restaurants, fitness operators and digitally native retailers are all competing for space, while investing heavily in experiential stores that blend shopping, hospitality and entertainment. That level of commitment reflects long-term confidence in New York City.”

The borough’s retail recovery continues to gain momentum, though Times Square and Herald Square still account for more than one-third of all available storefronts citywide.

Despite ongoing headwinds, retailers, landlords and investors remain optimistic that strong demand and limited availability in prime corridors will continue to drive leasing activity through the second half of 2026.

Other Key Findings:

Prime corridors continue to tighten: SoHo, Madison Avenue, Lower Fifth Avenue, Bleecker Street and portions of the Flatiron District have seen quality storefront availability decline by more than 20% over the last two years.

Food, fitness and apparel lead demand: These sectors accounted for most of the leasing activity during the first half of 2026, with notable growth from experiential fitness concepts, specialty food operators and fashion brands.

Experiential retail continues to expand: Multi-level flagship stores, hospitality-inspired fitness concepts and immersive retail environments are the new standard as brands invest in differentiated customer experiences.

Residential neighborhoods remain strong performers: The Upper East Side and Upper West Side continue to benefit from a loyal residential base, higher household incomes and demand from neighborhood-serving retailers.

Retail investment activity is increasing: Luxury retailers and investors are increasingly acquiring flagship properties rather than leasing them, particularly along Madison Avenue and in SoHo, but also on Fifth Avenue.

Challenges remain: Elevated construction, labor and financing costs continue to constrain growth for many operators despite strong underlying demand.

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.

"The most encouraging signal in this report isn't on Madison Avenue — it's on Columbus, on Third, and along Broadway on the Upper West Side,” said Jessica Walker, President & CEO of the Manhattan Chamber of Commerce. “When a viral bakery, an independent coffee shop, and a new fitness studio are all competing for the same neighborhood storefront, that's Manhattan's commercial life coming back from the ground up. The job now is making sure that energy reaches every corridor, not just the marquee ones."

"Retail leasing activity is extremely strong in Manhattan, particularly on prime corridors, where demand from apparel, fitness, and food and beverage tenants has absorbed much of the available space,” said Robin Abrams, Vice Chairman, Compass. “Tenants face increasing competition for quality locations and must meet landlords’ expectations around financial security and lease terms. As property owners seek to maximize rents and minimize risk, deals are taking longer to complete and require greater attention to detail from both parties."

“REBNY's report confirms what we're seeing on the ground every day in Midtown East. Lower Fifth Avenue is home to some of the most sought-after retail addresses in Manhattan,” said Fred Cerullo, President & CEO of the Grand Central Partnership. “Our pedestrian data tells the same story: volumes along Lower Fifth grew 2% in the first half of 2026 compared to the same period last year, and the corridor is anchored by Fifth Avenue and 42nd Street, which ranks as our highest-volume location among the 34 pedestrian counting sites we track in the neighborhood.”

"We're regularly seeing new retail openings in Times Square, including Top Toy at 1515 Broadway and Kilwin Times Square at 1600 Broadway, with many more openings soon including a flagship Ulta Beauty store and international brands Pop Mart and House of Spells ," said Tom Harris, President of the Times Square Alliance. "We continue to see developers invest in new ground floor inventory, including at 1568 Broadway. We hear consistently from our retailers, including Miniso, that due to our longer hours and higher pedestrian counts, sales in Times Square are the highest of any of their US locations."

“Seventeen stores and restaurants opened on Madison Avenue on the Upper East Side in the first half of 2026,” said Matthew Bauer, President of the Madison Avenue Business Improvement District (BID). “This extraordinary level of investment by the world’s leading luxury and contemporary retailers, art galleries, and hospitality destinations reflects the enduring strength of Madison Avenue. Openings include new stores from longtime Madison Avenue retailers Kwiat/Fred Leighton, Mackage, and Missoni; first U.S. locations for Bonjil, La DoubleJ, and Pasquale Bruni; a new gallery from Gagosian; and Marcel, the acclaimed new restaurant at Sotheby’s New York. We thank REBNY for recognizing the continued vitality of brick-and-mortar retail and the important role Madison Avenue plays in New York City’s economic and cultural life.”

“Hudson Square has made significant investments in creating a more welcoming, pedestrian-friendly streetscape, helping drive low vacancy rates and attract a growing mix of unique and innovative retailers,” said Samara Karasyk, President & CEO of the Hudson Square Business Improvement District. “We’ve seen particularly strong results along the west side of Houston Street, where vacancy stands at just 6.3 percent, underscoring the value of investing in people-first public spaces. We look forward to building on this progress and welcoming retailers that reflect the character and energy of the neighborhood.”

“The strength of Flatiron and NoMad's retail market is no accident. Years of public and private investment alongside dedicated neighborhood stewardship have created a vibrant district where people and businesses want to be,” said James Mettham, President, Flatiron NoMad Partnership. “With retail occupancy at 87% and demand remaining strong across dining, wellness, experiential, and service-oriented businesses, retailers continue to recognize the value of being part of a neighborhood that offers a steady and diverse customer base throughout the day. The continued interest we're seeing from businesses reflects the unique energy of Flatiron and NoMad and the long-term confidence in its future as one of Manhattan's most dynamic mixed-use destinations.”

“Union Square continues to see new storefronts come to life across the district, underscoring Union Square’s position at the center of Manhattan’s retail resurgence. As leasing accelerates across the city’s most competitive corridors, Union Square is seeing strong demand from retailers that recognize the value of physical stores as true destinations — from experiential concepts and hospitality-driven brands to innovative food and beverage operators,” said Julie Stein, Executive Director of Union Square Partnership.

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