New York City Retail Market Report
New York Retailers Post Initial Signs of Progress, Bringing Single-Tenant Investors Off the Sidelines
Retailers gain traction in the second quarter. Reflecting the challenges faced by New York storefronts in the pandemic, more than 800,000 square feet of retail space was vacated between April 2020 and March 2021. That trend ended in the second quarter, however, as tenants, assuaged by lifted capacity restrictions, absorbed 150,000 square feet on a net basis in that span. Leasing activity was strongest in North Brooklyn and North Queens. The return of some residents and office workers also prompted the arrival of more retailers to Midtown South, where rents are some of the highest in the city. New tenants to the submarket included grocer Hannaford as well as several fitness concepts and fast-food establishments. Growing demand has yet to translate into improved property fundamentals, however, as several factors continue to weigh on the retail sector this year.