“First-Time” Retailers Spark Retail Resurgence in New York City

·       Fueled by the return of international tourism and resilient consumer demand for luxury and leisure, New York City remains a prime destination for retailers seeking to open their first brick and mortar locations.

·       The tenant-favorable conditions following the Covid-19 pandemic, such as an ample supply of attractive vacant storefronts, generous concession packages, flexible lease terms, and percentage-rent lease structures, have motivated retailers to seek opportunities in markets they may have been previously unable to penetrate or afford.

·       Between 2020 and 2023, over 1.56 million sq. ft. of new deals were signed by retailers opening their first Manhattan outposts, making up approximately 15% of the total leasing volume during the three-year period.

·       In 2023, “first-timers“ committed to more than 455,000 sq. ft., or 18%, of Manhattan’s annual leasing volume, and accounted for nearly 30% of the square footage leased by all new entrants during the three years prior.