New York City Retail Market Report
Retail Outlook Likely a Combination of Comebacks And Closures as Business Precautions Ease
Retail operations begin to stabilize following hard year. New York retailers were some of the most challenged in 2020 as an early wave of infections prompted strict lockdown procedures. The disruption to cash flow was reflected in a 7.2 percent decrease in the average asking rent, the second largest drop after San Francisco. Even then, New York’s vacancy rate remains one of the tightest in the nation among major markets. While the measure is set to rise further this year, the margin will be narrower as the ongoing vaccination process has reduced COVID-19 case counts. Relaxed health restrictions will help drive greater foot traffic, especially at restaurants that can now operate at 50 percent capacity. Any indoor dining in New York City had been prohibited as recently as December of last year.