CBRE today released its Manhattan Retail MarketView for the third quarter of 2017.
The Manhattan market continues to adapt to current retail challenges. In the third quarter, rents declined in 12 of the 16 main retail corridors tracked by CBRE, with the overall average asking rent falling 13.4% year-over-year. In tandem, the number of direct available ground-floor spaces declined for the second consecutive quarter, dropping 2.5%, from 202 to 197 spaces. Despite the decline, availability remains high relative to 12 months ago.
“The retail market in Manhattan is still finding its new level,” said Nicole LaRusso, Director, Research & Analysis, CBRE Tri-State. “The modest decline in the number of available spaces is a positive sign, though rents continue to decline. Short-term leases are becoming an increasingly important factor in helping to absorb available space.”
Leasing activity decreased in Q3 2017, with nearly 506,000 sq. ft. of transactions closed during the quarter. Along with the slowdown in leasing activity, approximately 20% of closed transactions were made up of short-term deals (those less than three years). The most active neighborhoods in terms of sq. ft. leased were Times Square, Midtown East and SoHo.
Restaurant and apparel retailers remain active across the borough, while discount retailers are also continuing to expand. New York City total employment is at an all-time high, increasing 1.7% year-over-year, to 4.4 million workers. In line with strong leasing activity in the restaurant category, the leisure and hospitality sectors added 17,700 jobs over the year.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
