- Prime retail corridors are booming, with New York, Los Angeles, and Miami capturing over 60% of major leasing activity.
- Luxury and lifestyle brands dominate, accounting for 80% of new openings in these high-demand urban areas.
- New York leads the pack, driven by strong tourism, flagship investments, and low retail availability.
- Miami climbs the ranks, adding new prime corridors and overtaking Washington D.C. in retail momentum.
Urban Retail Roars Back
After several years of pandemic-driven retail disruption, prime urban corridors across North America are making a strong comeback. Leading the resurgence are New York, Los Angeles, and Miami, as reported by CoStar. New York, Los Angeles, and Miami are attracting outsized retail investment and tenant interest, per JLL’s report at ICSC.
The Numbers Behind The Trend
JLL analyzed 40 major retail corridors across the US and Canada. New York, Los Angeles, and Miami led, accounting for 60% of major retail openings. Over 80% of new luxury and fashion leases are in these cities, showing strong demand from high-end retail tenants.
Flagship investments by brands like Uniqlo, H&M, John Varvatos, and Levain Bakery are leading the charge, with fashion and food accounting for more than three-quarters of all recent leases.
New York Holds The Crown
With SoHo, Madison, and Fifth Avenue, New York remains North America’s top retail market for luxury and flagship brands. JLL noted the city’s edge across multiple categories including apparel, home goods, groceries, and beauty. Strong domestic tourism and record-breaking Broadway attendance have further lifted foot traffic and retail demand.
Retailers are taking notice. Some, like Uniqlo, are going beyond leasing and acquiring real estate outright. The Japanese brand recently closed a $350M deal for a portion of its 91K SF flagship on Fifth Avenue.
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Miami Gains Momentum
Miami’s inclusion of Brickell and Coconut Grove as prime corridors helped it surpass Washington DC in JLL’s rankings. The city now counts four key retail zones, also including Lincoln Road and the Design District. JLL noted that Miami’s retail focus leans more heavily into luxury, while DC is stronger in high-end but non-luxury apparel.
Looking Ahead
Retail leasing in major cities is no longer about simple foot traffic—it’s about creating immersive, lifestyle-driven environments. According to JLL, the current environment is “winner-take-all,” with global and national brands concentrating expansion into the most resilient and high-performing urban corridors.
As availability tightens and rents rise—especially in places like Manhattan—retailers are facing increased competition for limited space. This demand is driving higher premiums and encouraging long-term investments in brick-and-mortar locations.
Why It Matters
The urban retail revival signals a broader shift back toward city centers—fueled by both consumer demand and corporate return-to-office trends. For developers and investors, the opportunity lies in understanding where retail is thriving and why. With leasing volumes rising and brand commitments growing more permanent, top-tier retail corridors may be entering a new phase of long-term resilience.
