- NYC retail leasing surged in the second half of 2024, with SoHo and Madison Avenue among the most competitive corridors.
- Fashion brands accounted for 20% of new leases, including Brooks Brothers and Boggi Milano.
- Lower Fifth Avenue and Herald Square saw weaker demand, though upcoming redevelopment may provide a boost.
- Major investments included Acadia Realty Trust’s $44M SoHo acquisition and Blackstone’s $198M retail purchases.
- Retail rents remained below pre-pandemic levels in 16 of 17 key corridors.
Manhattan’s retail leasing market saw a comeback in the second half of 2024, thanks to strong job growth, tourism, and the ongoing return-to-office movement, as reported by Commercial Observer.
Street by Street
According to a report from the Real Estate Board of New York (REBNY), Manhattan retail leasing activity was concentrated in high-profile areas like Madison Avenue and SoHo, where vacancies dwindled.
Madison Avenue between 60th and 76th Streets was nearly fully leased by year-end, while a seven-block stretch on Bleecker Street from Seventh Avenue South to Hudson Street also saw high demand.
Unsurprisingly for that area, fashion brands drove leasing, with Brooks Brothers signing for 9,871 SF at 195 Broadway and Boggi Milano taking 8,810 SF at 527 Madison Avenue.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Uneven Activity
While leasing was robust in key corridors, areas like Herald Square, Times Square, and Lower Fifth Avenue saw less activity.
However, Mayor Eric Adams’s proposed 20-block redevelopment of Fifth Avenue could revitalize leasing in that corridor.
Beyond leasing, investors also remained active. Acadia Realty Trust (AKR) acquired 92 and 94 Greene Street in SoHo for $44M, while Blackstone (BX) invested $198M in several SoHo properties, including 61 Crosby Street and 465 Broadway.
Zooming Out
Despite retail rents in Manhattan remaining at least 10% below pre-pandemic levels in 16 of 17 major corridors, 2H24 leasing activity signals growing confidence. The influx of global brands and local retailers has led to renewed demand, particularly in high-traffic areas like SoHo and Madison Avenue.
While operating costs remain high, the ability to secure prime locations at reduced rates could drive expansion, particularly among luxury and experiential brands. Lower rents, combined with a steady rebound in tourism and office foot traffic, present a window of opportunity for retailers looking to establish a foothold in Manhattan at a relative discount.
Additionally, upcoming infrastructure projects—such as the planned 20-block Fifth Avenue redevelopment—may inject new life into struggling corridors, drawing additional tenants and investors.
If leasing momentum continues, it could accelerate Manhattan’s broader retail recovery, bringing rents closer to pre-pandemic levels in the years ahead.
