Retail rents in Manhattan are on the rise, but below their pre-pandemic peak.
Of the 17 major retail corridors in Manhattan Real Estate Board of New YorkNine have seen an increase in average asking rent per square foot since the fall of 2021.
In the wake of the pandemic, retail tenants continue to recover slowly due to supply chain problems, soaring prices and staff shortages. The report also states that the major concessions and accommodations acquired by tenants in 2020 and 2021 are almost gone.
The recovery hit by this sector is uneven across autonomous regions and retailers as a whole. Harlem is closest to its pre-recession peak, just 5% short. At the other end of the spectrum, SoHo is more than 60% below its previous benchmark.
“In early 2021, food, fitness and local services dominated Manhattan,” said Keith Decoster, Director of Market Data and Policy at REBNY. “We have just begun to see the return of international retailers with the first entrants previously priced from the autonomous region.”
According to Decoster, demand is rising from several other sources, including Madison Avenue and Soho’s luxury fashion and accessory retailers. 747 Versace’s 5,300-square-foot lease on Madison Avenue..
Other major Manhattan retail leases signed in the last six months include: 44 Petco’s approximately 30,000 square foot lease at Union Square, 26,400 sq ft for rent on Din Tai Fung’s 1633 Broadway Avenue 26,000 sq ft rental property in Midtown and Food 52 on 902 Broadway Avenue in Flatiron.
The average offer price per square foot on 5th Street between 49th and 59th Streets was $ 2,775, up 6% from the fall of 2021 but down 8% year-on-year.
Downtown — Bleecker Street between 7th Ave South and Hudson Street — The asking price per square foot reached $ 226, down 10% from the fall of 2021 and down 6% year-on-year. In addition, Uptown — Madison Avenue between 57th Street and 72nd Street — the asking price per square foot reached $ 769, up 3% from the fall of 2021 but down 1% year-on-year.
According to the report, Reese was the Times, despite notable deals in the corridors such as the return of Planet Hollywood at Times Square and Swarovski’s flagship 711 Fifth Avenue and Swarovski’s planned flagship. Still late on Square and Fifth Avenue. Seven new retailers, including City Winery, have signed a lease at Grand Central Station, which was encouraging office-dependent districts like Midtown East.