According to a report by CBRE, Manhattan’s retail market is showing positive growth in the first quarter of 2023. Available storefronts on 16 prime shopping corridors decreased by 7.2% from Q4 2022 to Q1 2023, while the average asking rent increased for the third consecutive quarter to $638 per square foot, up 3.7% from the prior quarter and 8% higher than a year ago.
The report cited impressive transactions, including LVMH’s new 43,500-sq.-ft. lease for Louis Vuitton at The Trump Organization’s 6 East 57th Street, among others. However, despite these figures, there seem to be more empty stores than there were a year ago, especially in certain areas such as midtown Sixth Avenue, where three large corners have remained vacant for over a year.
CBRE retail broker Matt Chmielecki pointed out that the lease-up process now takes longer than in the past due to multiple layers of corporate approvals, and there is more high-quality retail space in Manhattan than 25 years ago. Nonetheless, he stated that there is enough demand to fill all the new Manhattan space, and the different markets are now more clearly defined than in the past.