New York Retail Market Report
Commuter Foot Traffic Slow to Recover, but Alternative
Sources Boost New York's Retail Sector
Tourism bolsters retail recovery as return to office continues. In July, pedestrian traffic in Times Square surpassed 90 percent of the equivalent month in 2019, and domestic tourism to the city is on track to equal pre-pandemic counts before the end of next year. Additionally, according to data from Kastle Systems, office occupancy jumped to nearly 47 percent in the weeks following Labor Day, as many of the city's firms chose the date to call employees back to the office. Nevertheless, eateries in commuter-dependent districts still report significant gaps between current weekday foot traffic and pre-2020 norms, citing office occupancy figures. A full retail recovery in the city's business districts depends on reopening workplaces, a process that will face notable headwinds until more slack appears in the labor market.