- Retail corridors Times Square and Fifth Avenue make up 60% of available storefronts in Manhattan.
- Times Square’s average retail rent fell 4.4% to $1,850 PSF and is 22% below its 2016 peak.
- Fifth Avenue saw rents rise 4% to $2,550 PSF but remains 27% below its peak from 2016.
- SoHo and Madison Avenue are seeing high leasing activity, with limited availability and rents nearing pre-pandemic highs.
Flagship Retail Corridors See Slow Recovery
CoStar reports that retail corridors Times Square and Fifth Avenue remain laggards in Manhattan’s broader retail rebound, according to a recent study by the Real Estate Board of New York (REBNY). Despite a surge in tourist foot traffic, leasing in these expensive districts still trails faster-recovering corridors like SoHo and Madison Avenue.
Combined, Times Square and the upper span of Fifth Avenue account for roughly 60% of all available storefronts in the borough and much of the larger retail space inventory above 10 KSF. Many of the spaces remain vacant as retailers hesitate to commit, with activity in these areas concentrated in only a few sectors.
Rents Down from Peak Levels
The report showed Times Square’s average asking rent fell 4.4% to $1,850 PSF in the second half of 2025, marking a 22% decrease from the $2,363 PSF peak in 2016. Fifth Avenue’s average rent increased slightly by 4% to $2,550 PSF, yet rents remain 27% below their late-2016 high of $3,484 PSF. REBNY noted that while both retail corridors register strong foot traffic, many storefronts sit on the market for extended periods due to unique site requirements and high costs.
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Other Corridors See Strong Demand
By contrast, SoHo’s average asking rent climbed 17% to $726 PSF, with quality spaces quickly leased. Madison Avenue registered only 13 available storefronts in late 2025—about half the number earlier in the year—and continues as a luxury retail destination. Recent flagships, like Falconeri’s new 2,400 SF lease, highlight tenant confidence in prime areas outside the lagging retail corridors. This comes as overall retail availability in Manhattan hits historic lows, further tightening competition for well-located storefronts.
What’s Next for Manhattan Retail Corridors
REBNY reports tenants are moving quickly on prime spots in SoHo and Madison Avenue, while retailers remain cautious in Times Square and Fifth Avenue. Storefront availability and slower absorption in these retail corridors signal they still have ground to make up in Manhattan’s recovery. Investors and operators will watch leasing velocity and rent trends closely as competitive dynamics evolve across the borough’s retail landscape.
