M
anhattan's retail market continued its post-pandemic recovery with a significant drop in available space last quarter. According to JLL, only 14.7% of prime retail space was available from July to September, the lowest ever recorded in the city. This represents a substantial decrease from 2021 when availability peaked at 28%. The number of available retail spaces in Manhattan dropped to just 202 during the third quarter, down from 210 in the previous quarter.

    The market has become much tighter than it was before the pandemic, with average availability averaging 21% in 2019. Lower Fifth Avenue saw a notable drop in availability rates, falling from 21% in the second quarter of this year to a record-low 11.3%. SoHo also experienced a dramatic recovery, with availability rates decreasing from 34.6% in 2021 to just 11.5%.

    The current asking rent is $301 per square foot, a modest 3% increase year-over-year. However, some submarkets showed slight increases in available space, including Madison Avenue and Williamsburg. The Meatpacking District continues to face challenges with an availability rate of 26.9%, while average asking rents fell 4.5% year-over-year.

    Asking rents have followed mixed patterns, with significant increases in Times Square and upper Fifth Avenue, but declines on lower Fifth Avenue and Madison Avenue. The numbers suggest that the market has met demand for spaces, according to JLL. Tourism, a crucial driver of Manhattan's retail economy, has rebounded significantly, contributing to the surge in activity. Hotel occupancy is near record highs, and popular destinations like the Statue of Liberty are seeing visitor numbers close to pre-pandemic levels.