New York Retail Market Report

Manhattan office recovery attracts retailers. In June, more New York office space was occupied than in 2019 before the pandemic. Some sources also estimate that office attendance returned to a similar benchmark, bolstering midweek foot traffic. Stronger food-and-beverage demand helped vacancy fall 90 basis points to under 4 percent in Downtown Manhattan over the first half of 2025. In Midtown South, retail vacancy held near 5 percent as Disney’s new headquarters drove record office absorption. An August rezoning authorizing 9,500 dwellings and nearly $500 million of in-state investment should reinforce the area’s outlook. In contrast, softer travel demand and retailer turnover may weigh on tourist corridors in Midtown and Uptown, where vacancy exceeded 7 percent in June.