New York Retail Market Report
Commuters, Tourists Stoke Retail Sales;
New High-Credit Tenants Entering Market
With omicron in the rearview, retail recovery continues. After falling in January of this year, subway ridership rose to pre-omicron counts by early April, and should maintain this upward trend moving forward. Bridge and tunnel usage suggests that an additional portion of commuters have returned to office districts, but are entering the city via personal vehicles as extant health risks influence transit choices. As professionals return to office districts, foot traffic to nearby retail should follow, increasing vendor competition for prime space and bolstering rent recovery in core areas of Manhattan. However, perceived health threats could create headwinds to a full recovery, as some consumers may reconsider non-essential public transit usage.