The New York City retail market experienced a slight improvement in market conditions in the second quarter 2017. The vacancy rate went from 4.0% in the previous quarter to 3.8% in the current quarter. Net absorption was positive 122,796 square feet, and vacant sublease space
increased by 8,460 square feet. Quoted rental rates increased from first quarter 2017 levels, ending at $91.28 per square foot per year. A total of 1 retail buildings with 10,380 square feet of retail space were delivered to the market in the quarter, with 2,953,652 square feet still under construction at the end of the quarter.
DEALS
The largest lease signings occurring in 2017 included: the 60,000-square-foot-lease signed by Whole Foods at 5 Manhattan West; the 47,286-square-foot-deal signed by Nordstrom Rack at 855 Avenue of the Americas; and the 39,821-square-foot-lease signed by Target at 111 W 33rd Street.
RENTAL RATES
Average quoted asking rental rates in the New York City retail market are up over previous quarter levels, and up from their levels four quarters ago. Quoted rents ended the second
quarter 2017 at $91.28 per square foot per year. That compares to $89.86 per square foot in the first quarter 2017, and $85.89 per square foot at the end of the third quarter 2016. This represents a 1.6% increase in rental rates in the current quarter, and a 5.90% increase from four quarters ago.
STRONGEST & WEAKEST NEIGHBORHOODS
Harlem, Times Square, The Insurance District, & The Fashion District had the greatest amount of YTD Net Absorption, while The Plaza District, Chelsea, Greenwich Village, and The Financial District had the worst YTD performance with regards to Net Absorption.
