NEW YORK – JULY 17, 2025 – Manhattan's retail leasing market was robust in the second quarter of 2025, backed by historically low availability, strong economic fundamentals, and steady experiential and F&B leasing activity, according to Cushman & Wakefield’s Manhattan Retail Q2 2025 MarketBeat. The availability rate in the 11 premier Manhattan retail markets dropped to 12.8% in Q2, down from 13.5% the previous quarter; this was the lowest rate since Q4 2014, signaling a robust recovery from the pandemic peak of 27.8%.
“We continued to see positive indicators of the strength of Manhattan’s retail market in Q2. Notably, 10 out of Manhattan’s 11 premier retail submarkets saw rates fall below pre-pandemic levels recorded in Q2 2019,” said Dana Mischler, Senior Research Analyst for Cushman & Wakefield. “Food and beverage concepts continue to drive leasing momentum, accounting for 37.7% of total retail leases in 2025 year-to-date. This underscores the evolving role of experiential retail as a key demand driver in a post-pandemic landscape, ultimately creating more competition for space and impacting both availability and rents.”
The Upper East Side and Upper West Side submarkets reported availability under 10%, as new apparel brands, cafés, and fitness concepts increasingly target these densely populated residential neighborhoods. Meanwhile, Flatiron/Union Square has reported a 15.2% reduction in retail space availability since Q2 2021. This improvement has been fueled by leasing activity driven by national apparel brands and quick-service restaurant chains. Other high-demand areas, such as Madison Avenue and SoHo, have also experienced growing interest, leading to a 25.0% increase in asking rents compared to their lows in Q1 2022.
Asking rent trends varied across Manhattan’s prime retail corridors. While seven of the 11 submarkets posted year-over-year rent declines, the borough managed to achieve a modest 1.0% annual increase overall. This reflects localized shifts in demand and pricing dynamics across different neighborhoods.
You can access the full Manhattan Retail MarketBeat here.
Q2 Manhattan Retail MarketBeat Report
Elise Maguire Ferrara • 7/17/2025
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Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.