REBNY Releases Manhattan Retail Report | Spring 2022

Manhattan’s retail sector gained traction during the last six months according to the report recently released by the Real Estate Board of New York (REBNY). Although still below pre-pandemic levels, rents are stabilizing in many areas; and brokers are expecting increased lease completions for the balance of 2022. However, lease completions and business openings continue to be impeded by “construction inspection and licensing delays, as well as supply chain dysfunction.” Several positive indications of Manhattan’s improving retail market include sustained leasing in multiple corridors; the diversity of retailers completing leases is expanding; a depletion of availability of prime retail spaces in several corridors; a normalizing of rent and lease terms after the consistent rent declines and creative deal structures during the pandemic; and a rising demand in more corridors, with the biggest improvement in key shopping destinations like Madison Avenue and Soho.