Yet another wave of store closures has hit New York as 2026 begins. As a result, retail contraction continues to mirror national trends. Francesca’s is closing all locations, including several in major New York shopping centers.
At the same time, GameStop is shutting dozens of stores across the state. Meanwhile, Saks Global’s bankruptcy has created additional uncertainty for luxury retail locations. Consequently, further consolidation is expected across high-profile corridors.
However, Manhattan’s retail market showed renewed leasing strength in 2025. More than four million square feet of retail space was transacted across prime districts. Therefore, demand for high-quality locations has remained resilient.
Across the state, several national brands such as Macy’s, REI, and Saks Off 5th have announced store reductions. As a result, retail vacancy remains elevated, especially in secondary submarkets.
Nevertheless, analysts are projecting a more balanced outlook this year. National forecasts point to modest growth in store openings while closures continue to slow. In particular, beauty, discount, and value-oriented brands are expected to expand.
In addition, retail sales tax receipts in New York City reached record highs in 2025. Consequently, consumer spending has remained a supportive factor for brick-and-mortar recovery.
Meanwhile, retailers are shifting toward experiential and service-driven concepts. As a result, wellness, dining, and entertainment uses are gaining traction across mixed-use environments.
Still, closures are expected to outpace openings overall. Ultimately, leasing momentum will remain concentrated in well-located, high-traffic retail corridors throughout New York.
About CORFAC International – New York
CORFAC International – New York, an extension of CORFAC International delivers over 90 years of Expertise for Commercial Real Estate in the Greater NY Metro Area. Comprised of a partnership of WCRE & Chilmark Real Estate Services, CORFAC International – New York provides practical guidance, analyzes crucial transaction details for optimal workspaces and deals, by leveraging market knowledge to drive client success. As committed advocates, we deliver measurable results, serving global clients with expert advisory and property management. We match your dedication with proven expertise.
