New York City's retail segment is off to a solid start in 2025, according to JLL's first quarter report, which looked at the metro's prime market including areas such as Times Square, Madison Avenue, SoHo, Williamsburg, and the Meatpacking District.
The first three months of the year were highlighted by the availability rate dropping to 14.6 percent, representing the lowest levels on record, dating back to the third quarter of 2017. Availability averaged 20.1 percent in 2019 and 15.1 percent in 2024.
"Flatiron/ Union Square led this quarter's decreases in availabilities with a net decrease of 9 availabilities, falling from 48 in Q4 24 to 39 in Q1 25," JLL said.
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Madison Avenue Meatpacking and Upper Fifth were the only submarkets to see an increase in the category — but only marginally, according to the CRE firm.
Additionally, rents continue to grow at a healthy pace, at $577 in the first quarter, up 7.4 percent year-over-year. The rate is also up $14 from the fourth quarter of 2024. SoHo led all submarkets in quarter-over-quarter growth thanks to its 14 percent increase. Meanwhile, most other submarkets saw modest changes or a decrease in prices, according to JLL.
For example, "34th St/ Herald Square saw a decrease in asking rents by 18%, Meatpacking decreased by 12%, and Times Square decreased by 9%," it said.
While JLL did not reveal how the market performed overall regarding leases, it did show some top signings. The largest one went to Meow Wolf, which secured 75,000 square feet at Pier 17. The next two went to Skyzone and Lidl, which took 29,500 square feet and 27,500 square feet of space in prime NYC.
Additionally, JLL revealed some reporting on tourism activity. The CRE firm said hotel occupancy rates were solid, and "Broadway theaters continued to have high attendance."
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