REBNY: Manhattan Retail Report | Fall 2022

Fall 2022 retail leasing activity in Manhattan was characterized as “the strongest market activity since 2016 and 2017” per the recently released Manhattan Retail report by the Real Estate Board of New York (REBNY). Average asking rents per square foot for available space rose in 5 of the 17 corridors analyzed by REBNY, while remaining stable in 2 others; and concessions and lease flexibilities from landlords continue to diminish as availability tightens. Activity for much of 2021 and 2022 was fueled by the food and beverage sector, with leasing momentum further escalating due to more recent increased activity of apparel and accessories brands — particularly luxury brands. However, the industry is continuing to monitor the growing list of challenges that delay or possibly prevent store openings including — staffing shortages, supply-chain issues, delayed space buildouts, and a pulling back by consumers on discretionary spending —creating headwinds for continued recovery.