- Manhattan’s rolling four-quarter retail leasing volume surpassed 3.5M SF, up 14% year-over-year.
- Leasing activity in Q1 2025 rose 7% over Q4 2024, signaling steady demand across the borough.
- However, new Trump administration tariffs on imported goods could impact consumer spending and retailer expansion plans in the coming months.
Strong Start to the Year
Manhattan’s retail sector kicked off 2025 with solid leasing activity, per Commercial Observer.
According to a new report from CBRE, the borough recorded over 3.5M SF in rolling four-quarter leasing volume—a measure that tracks leasing over the last 12 months.
This represents a 14% increase from the same period last year. Compared to the previous quarter, leasing volume was up 7%, underscoring growing confidence from retailers, especially in high-traffic corridors and luxury segments.
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The Tariff Threat
Despite the encouraging numbers, uncertainty is looming. The Trump administration has introduced new tariffs on imported goods, which industry experts say could raise prices and potentially dampen retail activity.
If the cost of goods rises, retailers may pull back on leasing or renegotiate deals, particularly in Manhattan where overhead is already high. The impact of these policy changes is expected to be felt more acutely by brands with tight margins or heavy import exposure.
Looking Ahead
CBRE’s Hiro Imaizumi noted that while leasing demand remains robust, “macroeconomic headwinds could shift tenant sentiment quickly.” The next quarter will be crucial in determining whether the market can maintain its current pace amid rising costs.
Retailers and landlords alike will be closely monitoring tariff developments as they plan their strategies for the remainder of 2025.
