Manhattan Retail Leasing Rebounds, But Prime Storefronts Remain Vacant

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According to a detailed survey by the Real Estate Board of New York, Manhattan's retail leasing has rebounded strongly from the pandemic, with many fewer storefronts vacant in 16 prime 'corridors' tracked by the organization in the second half of 2025 compared to the previous six months. However, some of the city's top shopping districts, such as SoHo, still have significant storefront vacancies despite the overall improvement.

Why it matters

The rebound in Manhattan retail leasing is a positive sign for the city's economic recovery, as storefronts and foot traffic are crucial for local businesses and the broader commercial real estate market. However, the persistence of vacancies in prime shopping areas suggests that the retail sector is still facing challenges, particularly for landlords trying to fill high-profile spaces.

The details

The Real Estate Board of New York's survey found that storefront occupancy rates improved across 16 key retail corridors in Manhattan, with SoHo finishing 2025 with a 91% occupancy rate. This indicates that many brands are still eager to establish a presence in the neighborhood, which is known as a hub for local authenticity and global tourism. However, some prime retail locations, such as Fifth Avenue and Madison Avenue, continue to struggle with higher vacancy rates.

• The Real Estate Board of New York conducted the survey in the second half of 2025.
• SoHo finished 2025 with a 91% storefront occupancy rate.