Manhattan retail leasing continues to strengthen following its post-pandemic rebound. New data from the Real Estate Board of New York shows vacancy declining across key corridors.
Fewer storefronts were vacant in the second half of 2025 compared to the prior six months. Prime districts such as SoHo, Flatiron, and Upper Madison Avenue outperformed with stable or rising rents.
However, headline vacancy remains elevated in some of Manhattan’s most visible districts. Times Square, Herald Square, and Fifth Avenue above East 49th Street continue to report higher availability.
Vacancy in those heavily trafficked corridors can create the impression of broader softness. In reality, leasing activity has improved across many submarkets.
Momentum is also evident in Union Square. According to the Union Square Partnership, the district ended 2025 with a 91% storefront occupancy rate.
The area remains a target for brands seeking both local engagement and global tourism exposure. Strong performance in neighborhood-driven corridors reflects shifting tenant priorities.
For landlords and investors, the data suggests Manhattan retail fundamentals are stabilizing. Demand is increasingly concentrated in well-positioned, experience-driven corridors.
*Article courtesy of New York Post
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