Retail Supply Drives NYC Activity

Quality Space in High Demand

New York City’s retail sector is highly competitive as retailers seek quality locations in supply-constrained neighborhoods. Globe St reports that according to industry leaders at ICSC NEW YORK 2025, demand is driven by both domestic expansion and international tenants seeking an NYC foothold.

Brokerage executives say properties in premium neighborhoods are commanding strong rents, and deals are closing quickly where supply exists. Madison Avenue and SoHo lead the market, while Flatiron and Fifth Avenue are also seeing a surge of activity.

Retail Supply Hits Record Lows

JLL data reports that NYC’s prime retail supply dropped to its lowest recorded level since 2017. SoHo’s retail availability fell by 7% year-over-year, with Flatiron/Union Square and Times Square also tightening further.

This scarcity of quality retail supply benefits landlords, who receive competitive offers. Tenants, however, are often forced to compromise on location or property features.

Expanding into Boroughs

Industry experts say NYC retail activity remains steady, despite broader economic concerns. With limited supply in core areas, retailers are turning to boroughs like Brooklyn and Queens. Rapidly growing neighborhoods such as Williamsburg are becoming especially attractive. Retail interest remains strong even as rent levels in areas like Manhattan continue to climb to historic highs, underscoring the value of outer borough alternatives.