R
etail leasing velocity in the city is up 14% year over year, with over 3.5 million square feet of new leases and renewals. This has led to a drop in available storefronts on main shopping streets, according to CBRE. The increased demand for prime locations is making it tough for stores that want better spaces, said Lee Block of Winick Realty Group.

    The "flight to quality" trend seen in the office market is also playing out in retail, with luxury brands and new-to-NYC retailers driving up demand for high-end spaces. Meow Wolf leased 74,000 square feet at Pier 17, while Seaview Productions took over a former theater on Eighth Avenue near Times Square.

    Times Square remains a hub for large retailers, but it still has significant vacancies, including the 91,000 square feet that Forever 21 will give up at Vornado's 1540 Broadway. Meanwhile, restaurateurs are also competing fiercely for space in Manhattan, with Michelin-starred chefs like Masaharu Morimoto and Maple & Ash leasing large spaces.

    In Soho, vacancies along Broadway are nearly extinct, with brands like Crocs, New Balance, and Calvin Klein signing leases for flagship stores. Global brands see Soho as a key launchpad for their businesses, said Gene Spiegelman of Ripco. However, the competition is so fierce that even big players like LVMH are being outbid for prime spaces.

    As rents on Prince Street have dropped 24% quarter-over-quarter and 30% year-over-year, some stores are opting to buy their space outright rather than play the leasing game. CBRE is offering 115 Spring for sale as Adidas relocates to a new location next March. Meanwhile, Chanel is in talks to buy 60,000 square feet in a luxury residential tower at 655 Madison Avenue.

    Despite the retail frenzy, stock market gyrations over global tariffs are still top of everyone's minds, with clients preparing for the impact on consumer behavior and input costs, said Matthew Siegel of Lantern Real Estate. The uncertainty is having an impact, he added.