Manhattan Retail Report - First Half 2024

Active but Uneven Market – Tenants and Landlords Are Being Selective

Storefront demand was strong but uneven during the first half of 2024. Leasing moved at different speeds, though, depending on location, size, and sector. In prime corridors such as SoHo and Madison Avenue, for example, activity moderated due to tightening availability. On the other hand, the Upper West Side and Upper East Side, as well as Midtown East, Grand Central, and Lower Fifth Avenue have all attracted more retailers. Other corridors still lag despite ample availability.

Demand is strong for smaller and mid-sized storefronts; larger ones are taking longer to lease. Food and beverage, as well as apparel, accounted for much of the activity. A healthy mix of local entrepreneurs and new-to-market retailers are driving demand. More landlords are holding ground on lease terms, but rents remain 20% to 30% below pre-pandemic levels.