Report: H2 2024 Manhattan Retail Performance Boosted By Healthy Jobs Market, Near Record Tourism and Steady Return-to-Office

FOR IMMEDIATE RELEASE:

February 24, 2025

Report: H2 2024 Manhattan Retail Performance Boosted By Healthy Jobs Market, Near Record Tourism and Steady Return-to-Office

2024 Closed with an increasing number of large retail leases and tightening availability in many corridors

NEW YORK, NY –The Real Estate Board of New York (REBNY) today released its H2 2024 Manhattan Retail Report, which examines activity along major retail corridors in the borough from July to December 2024. The latest iteration of the biannual study noted strong leasing during the second half of 2024, with shrinking availability of larger spaces and positive tailwinds for the sector moving forward, which has still not fully recovered from the disruption of the COVID-19 pandemic. With the exception of a handful of prime corridors, rent growth has remained limited.

The average asking rent in 16 out of 17 corridors in this report remains at least 10% below prepandemic levels. That said, manyretail REBNY members surveyed for this report describe leasing activity as strong even with continued divergence among neighborhoods. Notably, a wide array of brands are attracted to multiple drivers of retail spending that are converging - robust regional income growth, near-record tourism levels and strong return to office trends. Return-to-office gained traction in early 2024 and stabilized in the mid-70% range since April, boosting retail leasing in core commercial districts.

Average H2 2024 asking rents rose from the first half of the year in only 6 of 17 corridors studied in this report. SoHo and Madison Avenue remain the most competitive corridors, and Columbus Avenue, Lower Fifth Avenue, and West Village also have negligible storefront availability. Notable Soho transactions include Buck Mason adding its seventh New York City location at 486 Broadway and digitally native Australian brand Princess Polly making its local debut at 514 Broadway. Madison Avenue saw several new trophy and flagship openings, including Giorgio Armani at 760 Madison Avenue, Serena Uziyel at 780 Madison Avenue and Saur Jewelry at 800 Madison Avenue. These transactions also underscore the critical role that luxury brands continue to play in the strong retail market.

Activity in other corridors remains sporadic. Leasing performance was more sporadic along Lower Fifth Avenue as well as Herald Square and Times Square submarkets. Mayor Adams recently unveiled details for the $350 million redevelopment of a 20-block stretch of Fifth Avenue. If implemented, this would be the most significant redevelopment of Fifth Avenue’s streetscape in its 200-year history.

Reflecting confidence in the Manhattan retail sector moving forward, the second half of 2024 featured several notable retail investment sales transactions. Acadia Realty Trust added to its SoHo portfolio, buying 92 and 94 Greene Street, anchored by Givenchy, and Blackstone acquired a handful of SoHo properties at 61 Crosby Street, 72-76 Greene Street, 465 Broadway, and 415 West Broadway. The latter is the largest Manhattan retail property transaction in three years.

“More than two years into its recovery, Manhattan’s retail market is still quite balanced – underscored by expansion by top global brands and local mainstays as well as retailers entering the market for the first time – all attracted to the resurgence of the City”, said Keith DeCoster, Vice President of Market Data and Policy at REBNY. “The costs and challenges associated with setting up and operating a store remain daunting, but relative to prior cycles, rents remain reasonable in most cases.”

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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ABOUT THE REAL ESTATE BOARD OF NEW YORK

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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