Fall 2021 Manhattan Retail Report

Key market metrics – foot traffic, retail sales, tourism levels and hotel occupancy – remain below pre-pandemic levels but are heading to higher levels. Tenants responded to strong evidence of rising demand, committing to more leases with lengthier commitments. Brokers noted that tenant improvement and lease flexibility are still prevalent. Compared to the Fall of 2019, there are twice as many spaces with an average rent under $300/PSF. Times Square registered its lowest rent in more than a decade. The retail market is poised to make another step forward, assuming that COVID-19 variants are contained and quality-of-life issues are addressed. The level of return of office workers in 2022 remains to be seen and is essential to several key retail districts.