Manhattan retail leasing velocity decreases for seventh consecutive quarter

The number of direct, ground-floor availabilities in the first quarter 2021 increased to 275 spaces in the 16 prime retail corridors in Manhattan tracked by CBRE. The average retail asking rent in Manhattan’s prime 16 retail corridors dropped 13.4 percent year-over-year and 5.1 percent quarter-over-quarter to $618 per square foot in the first quarter 2021, marking the 14th consecutive quarterly decrease.

Looking ahead, there is cause for optimism as residential vacancy rates decline in NYC, vaccination efforts accelerate throughout the region, and additional federal stimulus gives households more spending power — all of which should reinvigorate in-store spending in Manhattan in the months ahead.

Retail leasing velocity in the first quarter 2021 decreased for the seventh consecutive quarter. The first quarter 2021 rolling four-quarter aggregate leasing velocity, which measures total leasing (renewals and new leases) for the four prior quarters, was approximately 1.