January 30, 2019
The city’s economy is firing on all cylinders, retail sales across Manhattan grew by 6% year over year during the third quarter—the most recent timeframe for which figures are available—and leasing activity in the sector remains strong. Despite these factors, the market favors retail tenants, says CBRE.
“The Manhattan retail market continues to struggle with declining rents and an increasing amount of available space,” CBRE says in its Manhattan Retail MarketView. These conditions are evident in data for both Q4 and 2018 overall.
Average asking rent in Manhattan decreased by 2.3% Y-O-Y to $680 per square foot, declining in 11 of 16 main retail corridors, says CBRE. Availability increased, due partly to landlords splitting large blocks into smaller spaces, contributing to the uptick in ground floor availabilities.
On a positive note, CBRE says tenant interest has risen over the past year, “with landlords actively negotiating to close deals.”
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