Retail is booming in New York City's prime market, which includes major areas like Chelsea, Midtown, Herald Square, SoHo and Lower Manhattan.
It comes from findings in a second-quarter report from JLL, which noted that retail availability dropped to a record low, dating back to the third quarter of 2017.
"Meatpacking decreased by 10% or three availabilities, while SoHo decreased by 7% or four availabilities. Flatiron/ Union Square and Times Square decreased marginally," JLL said.
Additionally, rents experienced strong growth, reaching an average of $608 per square foot. That's up 11 percent year-over-year, and the amount marks the highest seen in nearly five years. But JLL did not note that the rate remains below pre-pandemic levels.
Times Square commanded the highest prices at $1,555 per square foot, representing a surge of 19.3 percent year-over-year. SoHo was another strong gainer, with its increase of 18.46 percent to $351 per square foot. Madison Avenue, Williamsburg and 34th Street/Herald Square were the only submarkets in prime NYC to post rent declines, plummeting by 14 percent, 1.2 percent and 9.6 percent, respectively.
As far as leasing goes, Old Navy and Life Time registered the largest deals, which secured 55,000 and 52,000 square feet spaces respectively. The next two biggest involved Trader Joe's in Chelsea and H&M in the Upper East Side, for 29,700 and 28,637 square feet, respectively.
Separately, JLL said that NYC room rates in the hospitality sector hit a record high. However, it also warns that experts still forecast tourism in the metro to slow down in the next year. This comes amid the global sparked trade war and fears about how the economy will respond. That's all potentially bad news for retail in NYC.
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