REBNY: Manhattan Spring 2023 Retail Report

The spring 2023 retail market in Manhattan brings a renewed confidence among luxury retailers, underscored by announcements of several significant flagship leases and developments according to the Real Estate Board of New York’s (REBNY) recently released Manhattan Spring 2023 Retail report. Many tenants have returned to the market, but with “revised business models that include a rightsized footprint and a focus on margins.” While the extreme discounts, concessions, and flexible lease structures prevalent 12 to 18 months ago have been disappearing, asking rents in 13 of the 17 corridors tracked by REBNY remain at least 30% below peak levels, with 10 of the corridors seeing slight rent increases compared to the fall of 2022. However, the retail market continues to face challenges with hybrid work schedules negatively impacting retail in core office districts, labor shortages and turnover that prolong store openings.