Manhattan Sees More Robust Retail Leasing Activity in 2nd Half of 2024

Manhattan’s strong market fundamentals helped boost retail leasing activity in the second half of 2024. Although leasing was strong in the first half of last year, in contrast to the second half, “brokers noted a lack of larger leases” according to the recently released Manhattan Retail Report – Second Half 2024 by the Real Estate Board of New York (REBNY). Some highlights among the larger reported lease signings include the 78,760-square-foot lease at 150 West 34th Street by Ireland-based clothing retailer Primark, discount clothing and homeware retailer Burlington’s 77,970-square-foot lease of the former Bed Bath & Beyond at 620 Avenue of the Americas, and arts and crafts retailer Hobby Lobby’s 70,716-square-foot lease of the former home of a Bed Bath & Beyond and Barnes & Noble at 270 Greenwich Street. The most competitive retail corridors continue to be along Madison Avenue and within the SoHo neighborhood, with activity throughout the borough from both established brands as well as newcomers to the Manhattan market.

While the food and beverage sector topped leasing for much of 2022 and 2023, a dwindling supply of quality restaurant space is impeding activity. In contrast the innovative arts, entertainment, and immersive experience venues, that gained quality-of-life importance during and after the pandemic accounted for several larger commitments. In addition, social gaming is quickly establishing as an emerging industry in New York City, with Squid Game: The Experience opening at the Manhattan Mall last fall, and the planned opening of a roughly 50,000-square-foot Monopoly Lifesized experience offered by PATH Entertainment Group at 11 Times Square. Despite the uptick in larger deals, REBNY’s report points out that lease completion remains complicated. Most of the deals completed during the six-month period took several quarters to achieve full execution due to the parties involved in negotiations going beyond just the landlord and the tenant to include lenders and community organizations in some cases. There has also been a growing number of retailers exploring ownership options, which can further lengthen the process.

Source:    https://www.rebny.com/reports/manhattan-retail-report-second-half-2024/