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Market Report

New York Retail Market Report

4Q 2023

Subdued Office Utilization Still Weighs on Business
District as Outer Boroughs See Diversity of Tenants

Manhattan office corridors adjust to lower foot traffic. Hybrid schedules remain the predominant mode of operation for office employers, impacting adjacent retail activity. A September release from the Partnership for NYC anticipates that, on a long-term basis, Manhattan office utilization will hold at just under 60 percent of pre-pandemic levels. While nearly three in four workers are present on-site at least three days a week, owners of vacant assets may lean on tenants catering to the borough’s residential population. In October, supermarket chain Wegmans made headlines with the opening of an 87,500-square-foot storefront, marking its first Manhattan location. Other grocers, such as Target and Lidl, are planning expansions in Midtown and Midtown South, along with experiential tenants targeting the return of international tourism. 
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