M
anhattan's hottest retail blocks are Uptown Madison Avenue, lower Fifth Avenue, and a fashionable stretch of Bleecker Street, according to a recent survey by the Real Estate Board of New York. The report highlights renewed leasing energy driven by fashion stores new to the city, such as Boggi Milano on Madison Avenue.

    Fashion retailers accounted for 20% of major recent deals, with some leases reaching up to 80,000 square feet. The drivers behind this surge were a strong jobs market, healthy tourism, and "back-to-office momentum." However, the report notes that many large deals were in negotiations for several quarters, suggesting it's not necessarily a sudden boom.

    Despite renewed demand, asking rents in most corridors are at least 10% below their pre-pandemic peak. Madison Avenue and Soho remain the most in-demand areas, with few availabilities drawing multiple offers from investors like Blackstone. Bleecker Street is also thriving, with nearly all storefronts leased between Seventh Avenue and Hudson Street.

    In contrast, Midtown Third Avenue, Times Square, and Herald Square have struggled to maintain leasing momentum, with most new deals going to fast food restaurants and small tourist-oriented shops. While Brooks Brothers' 10,000 square-foot lease at 195 Broadway is a significant commitment in the Financial District, it remains to be seen if others will follow.