Prime New York City retail availability continues to fall to new lows, at least, according to JLL's data, which dates back to the third quarter of 2017.
The rate at the end of the fourth quarter was 13.7 percent, down 18 percent year-over-year, a market report from the brokerage found. That's the lowest level on JLL's record and comes after it recorded a record low in the second quarter as well.
The results in the fourth quarter were driven by the SoHo, Meatpacking and Madison Avenue submarkets. Particularly, SoHo stoodout, with availability dropping to 9.8 percent, a record low for the submarket.
Also, prime NYC retail rent growth was impressive, increasing by 6.7 percent year-over-year to $584 at the end of 2025. The strongest gains were seen in Lower Fifth (16.9%) and Madison Avenue (nine percent).
“Prime New York retail fundamentals remain exceptionally strong, driven by sustained demand and a chronic lack of quality supply," Patrick. A. Smith, vice chairman of retail brokerage at JLL, said in a statement.
"In core corridors, well-located space is leasing quickly, pricing is resilient and decision-making has become far more strategic as tenants compete for fewer opportunities."
Meanwhile, JLL noted that the five boroughs of NYC continue to see fewer chain stores, with the amount decreasing by another 1.3 percent in 2025. Starbucks registered the most closings.
In 2026, JLL expects that the supply and demand imbalance will continue into this year in NYC's prime retail sector. This will be a tough market for tenants navigate around — but the one's with the right strategy could have a competitive advantage.
"Retailers that succeed will be those who plan earlier, move decisively when the right space becomes available and align real estate decisions with long-term brand strategy, ensuring that their physical footprint reinforces visibility, customer experience and growth objectives rather than reacting to short-term market pressures," Smith forecasts.
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