Prime Retail Vacancy in NYC Drops to New Lows in Q2 2024

In the second quarter of 2024, New York City’s prime retail availability rate dropped to a record low of 15.3%, a significant decrease from 21% in 2019 and 28% at its peak in 2021, as reported by JLL. Madison Avenue experienced a sharp decline in availability, falling to 5.3% from 16.0% the previous year. Lower Fifth Avenue also saw a decrease, dropping to 11.3% from 21.0% in Q2 2023. In contrast, Upper Fifth Avenue’s availability rate increased to 17.1%, up from a record low of 10% a year ago.

Rising Prime Asking Rents

Average prime asking rents in New York City rose to $548 in Q2 2024, up from $517 in Q2 2023, marking a 5.9% year-over-year increase. Upper Fifth Avenue saw a notable rise in rents, increasing to $2,350, up 11.6% from Q1 2023. Madison Avenue also experienced a rent increase, reaching $971, up 11.0%.

Tourism and Economic Trends

Despite higher post-pandemic hotel rates, tourism in New York City rebounded with a steady influx of international visitors, particularly from Europe and South America. The suspension of Congestion Zone pricing for vehicles entering lower Manhattan, along with a trend of higher hotel costs offset by reduced spending on retail and dining, were significant economic developments during this period.