March 24, 2017
New York City retailers are filling up new space faster than developers can build it.
Positive net absorption drove the average vacancy rate down to 3.4% by the end of 2016. Vacancies will fall even further to 3.2% by the end of 2017, potentially pushing rents higher.
“Incredibly tight vacancy translates into ascending average asking rents, which will reach $59.73 per square foot this year,” according to the 2017 Retail Investment Forecast by Marcus & Millichap.
Incoming projects are more than 80% pre-leased, underscoring the demand for quality spaces in the metro area.
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