Those anticipating a downward correction in the Manhattan retail market will have to wait for another quarter.

According to a report by CBRE, ground-floor retail availability decreased across 16 of Manhattan’s shopping corridors in the first quarter of 2023, marking the seventh consecutive quarter of a drop in availability. The average asking rent increased to $638 per square foot, a rise of 3.7% from Q4 2022 and 8% YoY, with this being the third straight quarter of asking rents increasing. The aggregate of square footage leased in the previous four quarters was 2.8 million square feet, up 14.5% from the year before.

Flatiron/Union Square was the most active neighborhood with 12 deals signed, followed by Soho. The apparel industry had the most deals with 27 for 243,000 square feet, with LVMH taking the biggest lease of 43,000 square feet.

(source: therealdealcom, picture: brad smith)