Manhattan Retail Report - Second Half 2025

REBNY’s H2 2025 Manhattan Retail Report is a biannual analysis of retail activity across the borough’s major corridors. This report provides a comprehensive look at storefront demand and asking rents from July through December 2025, offering a clear snapshot of how Manhattan’s retail market continues to evolve in a post-pandemic environment.

Big Picture

• Manhattan’s retail market remains resilient, with broad-based demand across many corridors.

• Average asking rents rose or held steady in six of the 16 corridors surveyed.

• Broadway in SoHo led all corridors, with a 24% increase in average asking rent compared to H1 2025.

• Across all corridors, average rents remain 32% below their 10-year peak, signaling room for continued growth.

What's Driving Activity

• Demand is being fueled by international luxury brands, expanding New York–based retailers, and new-to-market concepts.

• Food and beverage, fitness and wellness, and fashion accounted for the majority of leasing activity in H2 2025.

• Storefront availability continues to tighten in SoHo, Madison Avenue, Flatiron, Lower Fifth Avenue, and the West Village.

What's Ahead

While some corridors continue to see uneven recovery, brokers and owners remain cautiously optimistic heading into 2026, with expectations of continued competition in top corridors and gradual spillover into adjacent neighborhoods. Of note, Herald Square has already recorded several significant leases in the first several weeks of 2026.