NYC Retail Leasing Experiences Recovery Following COVID Decline

## The Resilient Pulse of Manhattan Retail

It might be a tad early to break out the Champagne, but Manhattan’s retail leasing scene is showing strong signs of bouncing back. As COVID-19 struck, already dwindling brick-and-mortar demand took a nosedive. Online shopping had slashed foot traffic by around 10%, and then lockdowns brought more pain. Yet here we are, with store windows lighting up once more.

### Lower Availability Signaling Change

Before the frenzy begins, let’s look at some numbers. Third-quarter surveys by [JLL](https://www.us.jll.com/en/real-estate-services/retail-leasing-advisory) and [Cushman & Wakefield](https://www.cushmanwakefield.com/en/united-states/services) revealed lower storefront availability—14.7% and 13.9% respectively. These numbers were significantly better than the mid- and upper-20% ranges of 2021. Both surveys hint at a brighter horizon, even though data fluidity for retail remains tricky. As real estate expert Richard Hodos puts it, this isn’t “an exact science.”


### A New Landscape Emerges

Meanwhile, CBRE claimed leasing was down by 25% compared to Q3 in 2023. Yet cynics be damned; deals tell a more optimistic story. There’s a buzz in key areas: Soho markets are tight, with competition on streets like Greene and Prince. We previously reported on significant deals like [Bonhams Auction House](https://nypost.com/2024/09/08/business/two-new-tenants-at-famed-nyc-towers-bolster-luxury-retail-market/) snagging 40,000 square feet at 111 W. 57th St. and [Five Iron Golf](https://nypost.com/2024/09/30/business/1290-sixth-avenue-skyscraper-adds-eagle-nest-with-five-iron-golf/) setting up at Vornado’s 1291 Sixth Ave.

### Vibrant Ventures Dot the City

Recent activity hints at retail’s renaissance. Cushman’s Joanne Podell noted the market equilibrium: “What’s interesting is, it feels balanced. It’s neither a landlord’s nor a tenant’s market.” In contrast to yesteryears, rents are lower, aligning better with operational costs.

Think we’re bluffing? Here’s a glimpse of exciting ventures popping up:

– **London-based Primark** is opening its first Manhattan store, covering 54,000 sq. feet at 150 W. 34th St., taking over Old Navy’s old stomping ground.
– **Brooks Brothers**, infamous for menswear, is betting on FiDi with a 9,500 sq. foot store at 195 Broadway.
– In a culinary twist, Bagizza! will magically bring together bagels and pizza at 424 Madison Ave.


### Art and Experience as Game Changers

CBRE trends spotlight new market players entering NYC for the first time. Retailers leasing their inaugural spots constituted 21% of the volume. Coupled with an influx of fine art and experiential tenants, these changes are transformative. New includes:

– **Urban Revivo’s first U.S. store** gracing Broadway with 30,000 sq. feet.
– **Arte Museum’s immersive art** experience unveiling at Chelsea Piers with 51,000 sq. feet.
– The **Monopoly Experience**, dominating 50,000 sq. feet at 11 Times Square.

### Rents and Recovery

Prices are climbing back but aren’t hitting pre-COVID spikes just yet. Hodos shares, “The asking rents, especially on Madison Avenue, were ungrounded. Now, gaps between bids and asks are sensibly narrowing.”

Transitioning through challenging times, Manhattan’s retail is striding back. While figures may not always align, the vibrant activity and strategic settlements offer promise. The scene is reshaping, one lease at a time—but let’s keep that bottle close just in case.

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