NYC Retail Leasing Sizzles Along Madison Avenue, Bleecker Street — But Cools in These Tourist Zones
Uptown Madison Avenue, lower Fifth Avenue, and — surprisingly — a fashionable stretch of Bleecker Street are Manhattan’s hottest retail blocks, according to a revealing new survey of the second half of 2024 by the Real Estate Board of New York.
The Report’s Key Findings
The report shows renewed leasing energy fueled by fashion stores new to the city, such as Boggi Milano at 527 Madison, which accounted for 20% of major recent deals.
Madison Avenue and Soho Remain in High Demand
Madison Avenue and Soho remain most in demand. The few availabilities drew multiple offers from investors such as Blackstone, which bought four Soho locations for $200 million.
Seven Blocks of Bleecker Street Nearly Fully Leased
Seven blocks of Bleecker Street in the West Village, from Seventh Avenue to Hudson Street, are nearly fully leased.
Royalty and Luxury Brands Flocking to Madison Avenue
Nearly all Madison Avenue storefronts on Madison between 60th and 76th streets are leased, including to Giorgio Armani and Van Cleef & Arpels.
Tishman Speyer’s Rockefeller Center Retail Space Fully Leased
Tishman Speyer announced that Rockefeller Center’s retail space is fully leased. A new Eataly Cafe will open this year.
Sl Green’s One Madison Tower Fully Leased
Sl Green’s One Madison, IBM’s new home, boosted the Flatiron District’s eastern portion. All of the tower’s storefronts are leased, including to Daniel Boulud’s La Tete D’or steakhouse.
Contrast to Tourist Zones
But weakness persists on Midtown Third Avenue and in Times Square and Herald Square.
Times Square and Herald Square Struggle to Maintain Leasing Momentum
Times Square and Herald Square have struggled to maintain leasing momentum. Most of the new deals were for fast food restaurants and small, tourist-oriented shops.
Brooks Brothers’ 10,000-Square-Foot Lease in FiDi
Brooks Brothers’ 10,000-square-foot lease at landmarked 195 Broadway is one of FiDi’s largest apparel commitments in years, but it remains to be seen if others will follow.
Conclusion
The report highlights the resilience of the retail market, with a strong second half of 2024 driven by multiple tailwinds, including a strong jobs market, healthy tourism, and back-to-office momentum. While there are areas of weakness, such as Times Square and Herald Square, other areas like Madison Avenue and Bleecker Street are thriving.
FAQs
Q: What are the hottest retail corridors in Manhattan?
A: Uptown Madison Avenue, lower Fifth Avenue, and Bleecker Street are the hottest retail corridors in Manhattan, according to REBNY’s report.
Q: What is the current state of the retail market?
A: The retail market is experiencing a resurgence, driven by a strong jobs market, healthy tourism, and back-to-office momentum, according to REBNY’s report.
Q: Are there any areas of weakness in the retail market?
A: Yes, areas such as Times Square and Herald Square have struggled to maintain leasing momentum, with most new deals being for fast food restaurants and small, tourist-oriented shops.
