REBNY Releases Manhattan Retail Report | First Half 2024
Demand for Manhattan storefronts was strong during the first half of 2024, but activity was uneven, and leasing moved at different speeds depending on location, size, and sector according to the recently released First Half of 2024 Manhattan Retail Report by the Real Estate Board of New York (REBNY). Due to tightening availability, the pace of leasing in the prime markets of SoHo and Madison Avenue moderated. In contrast, neighborhoods that attracted more retailers included the Upper West Side, Upper East Side, Midtown East, Grand Central and Lower Fifth Avenue, while other corridors still lag despite ample availability. Smaller and mid-sized storefronts are seeing stronger demand compared to larger storefronts, with activity from January through June being driven by a mix of local entrepreneurs and new-to-market retailers, of which food and beverage, along with apparel dominated activity. Although rents remain 20% to 30% below prepandemic levels, more landlords are holding firm on lease terms as increasing tourism boosts optimism. In Times Square alone, Visa spending on retail totaled $191 million for the 1st quarter of 2024, which was driven primarily by domestic visitors; and represents a 32% year-over-year increase in dollar volume.