Manhattan Retail Report - Second Half 2024

Positive Second Half of 2024 as Multiple Tailwinds Boost Retail Market

Activity Picks Up in More Corridors and Sectors

Leasing was strong during the first half 2024, but brokers noted a lack of larger leases. The second half of the year started and ended with 80,000 square foot leases (Ikea and Burlington), as well as many 20,000 square foot and greater leases. Multiple tailwinds, including a healthy jobs market, steady tourism, and return-to-office momentum, are boosting activity across many corridors.

Neighborhoods like Times Square, Herald Square, and lower Manhattan secured larger lease commitments. Activity spread to more sectors, including immersive arts and social gaming, gyms and recreation, as well as furniture and home goods, and came from brands that already have a presence in Manhattan, as well retailers that are new to the city. Tenants are more engaged as many retailers are drawn to Manhattan’s strong market fundamentals. Meanwhile many retailers and investors view rent levels and property prices as reasonable, relative to prior cycles.