- Retail availability in Manhattan’s top corridors dropped to 13.7%—a record low since 2017.
- SoHo and Upper Madison Avenue reported the tightest markets, with availability rates below 10%.
- Average annual prime corridor rents rose 6.7% in 2025, reaching $584 PSF.
- Availability rates remain high and rents soft in midtier corridors, notably Herald Square.
Retail Availability Plummets
Retail availability in Manhattan has hit a new low, driven by sustained demand in key neighborhoods according to a recent JLL study. Major corridors such as Fifth Avenue, Times Square, Meatpacking District, Union Square, and Herald Square collectively posted an availability rate of 13.7% in Q4 2025, marking the tightest market since 2017, says CoStar.
The report finds the average annual retail availability rate fell to 14% in 2025, down dramatically from the pandemic peak of 28% in 2021 and below the 21% pre-pandemic rate of 2019.
Top Performing Corridors
SoHo and Upper Madison Avenue led the market, with availability rates of 9.8% and 7%, respectively. Asking rents in SoHo surged 25% to $355 PSF, while Madison Avenue rents jumped to $982 PSF—the highest since 2019.
These premium locations continue to see strong tenant competition for fewer opportunities, pushing pricing higher and speeding up the leasing process.
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Mixed Recovery in Other Corridors
While core submarkets are seeing supply constraints, some corridors are lagging. Herald Square’s availability is approaching 40% and average rents fell 20% to $421 PSF. In contrast, Times Square saw rents drop 37% year-over-year to $960 PSF, though its availability rate stood near 22% despite record tourist traffic. This follows a wave of leasing momentum observed in the second half of 2024, which laid the groundwork for today’s tighter market conditions.
Ongoing Supply-Demand Imbalance
JLL’s report cites an enduring mismatch between strong demand and limited new retail supply across Manhattan. This tight market dynamic is expected to persist through 2026, especially in top-tier areas where new inventory remains scarce.
CBRE’s separate assessment confirms these trends, noting a 40% drop in available direct ground-floor spaces from the peak in 2021, further signaling improved fundamentals in the Manhattan retail sector.
