Property owners offering Manhattan retail spaces for rent have seen a major resurgence in demand in the past 6 to 12 months as businesses have been reviving previously shuttered storefronts. While online ordering has skyrocketed over the last two years due to Covid, brick and mortar retail is most definitely making a comeback as consumers are more comfortable with leaving their homes and itching to get outside. In the second quarter, retailers signed 67 new leases, accounting for a nearly 38% jump from the year before. But if you’re interested in commercial space for rent in or around Manhattan, there are still some great deals out there as new lease activity is still only around 45% what it was pre pandemic levels. And so here are some neighborhoods you may want to consider when looking for retail space to rent.
Times Square is one of the most popular tourist destinations in the entire world, and it is also one of the most expensive places to rent retail space.
Retailers who want to lease space in Times Square must be prepared to pay top dollar, as the area is in high demand with limited space and is exposed to a high volume of foot traffic. Averaging at about $2,500 per square foot, Times Square would likely be the most high end option for retailers searching for rent in Manhattan, but also the most lucrative due to the influx of tourists. However, it also saw the steepest decline in rent prices over the last year at 33% meaning it could be one of the better options out there.
The price for staking ground on Manhattan’s Fifth Avenue jumped 22 percent in the past year, spurred by a record number of tourists spending their dollars at top U.S. and international retailers on America’s most coveted shopping ground. Deals can still be nabbed, however, as the amount of space available to lease has remained high, with that figure topping 25% in the second quarter and increasing slightly from the first quarter of this year. Subleases account for almost 41% of the available space, meaning the demand is increasing but not enough to balance out the supply.
Right alongside Fifth avenue in terms of foot traffic and rent declines, Madison Ave has seen a 19% drop in rent over the last year. Many sellers are offering free property improvements as well as even offering free rent in the first year of leasing. Being that Madison Avenue is a popular tourist route for foot traffic, this could be a great choice for choosing retail space in Manhattan.