REBNY: Manhattan Retail Report | 2nd-Half of 2023

Retail leasing activity in Manhattan provides a bright spot at a time when “Manhattan’s office sector faces substantial challenges and residential sales are slowing” according to the Real Estate Board of New York’s (REBNY) January 2024 release of the Manhattan Retail report. However, retail leasing activity and rent levels continue to remain below pre-pandemic levels primarily due to two key drivers — tourism is about 10% below 2019 peak volume and office visitation is reduced from pre-pandemic norms. In addition, the general challenges of business setup also continue to hinder the retail sector. Key takeaways of the report indicate that consumer and tenant demand remain strong, and brokers generally describe lease terms as still reasonable, but while activity intensified in and around select corridors, lease completions are taking even longer.