New York Retail Market Report

Smaller boroughs stand out in robust market. Food has been a central theme of recent leasing. Grocery providers Lidl and Target are joined by restaurants Wonder, Wingstop, Naya and Little Caesars in moving into multiple locations so far this year. Absorption from these and other tenants will keep New York’s vacancy rate from rising more than 10 basis points this year, which is a smaller change than what 39 other major U.S. markets are reporting. Space demand is particularly notable in The Bronx and Staten Island, where vacancy fell year over year in the second quarter. This is translating into a notable growth in asking rents — especially in the former borough, where the mean rate was 23 percent above year-end 2019’s mark.