New York Retail Market Report

Residential population and enthusiastic tourist base prop up retail sales. Office utilization and the pedestrian traffic that comes with it have continued to improve, with a Partnership for NYC survey conducted in late 2023 placing attendance at nearly 60 percent of the pre-pandemic norm. As the city marks four years since the onset of the health crisis, however, much of the remaining gap is likely to hold in the long-term. Retail tenants may reorient their leasing strategies to focus on the residential neighborhoods and tourist-centric locales that have seen the strongest returns of pedestrian activity. Times Square exemplifies the latter trend, having recouped an equal number of tenants as those lost during the pandemic by the fourth quarter of 2023. This occurred amid consistent downward absorption trends in the broader Midtown submarket. Highlighting opportunities elsewhere, consistently tight multifamily operations showcase the demand for services in residential zones, which will help drive citywide retail sales above the $200 billion mark for the first time on record.