JLL: Manhattan retail vacancies at record low; Q2 signings include ….
Available retail space in New York City is increasingly hard to find.
Availability across New York City's prime retail corridors has fallen to a record low of 11.9%, according to JLL's newly released “Q2 2026 Prime Retail Market Statistics” report. It’s the lowest quarterly rate on record, beginning third quarter of 2017, (A list of significant second-quarter lease signings is at end of article.)
SoHo has reached its lowest (8%) availability rate ever. Union Square/ Flatiron saw the largest quarter-over-quarter drop in availabilities, from 14.2% in the first quarter of 2026 to 11.1% in the secoond quarter.
Average asking rents climbed to $592 per square foot. The amount is nearing post-pandemic highs as demand for high-quality retail space remains strong, the report said,
Other findings from the report include:
•Restaurants and bars airing Knicks championship games saw a median sales
increase of 25%. Meanwhile, the FIFA World Cup's economic impact has been tempered
by weaker-than-anticipated ticket sales and advance hotel bookings.
•Among submarkets that increased asking rents quarter-over-quarter were SoHo by
17.4%, Lower Fifth by 10%, Upper Fifth by 9.2%, Times Square by 9.0%, and
Williamsburg by 3.7%.
"As quality space becomes increasingly scarce, we're seeing landlords regain greater pricing leverage in many of the city’s premier shopping corridors, particularly in SoHo, Lower Fifth Avenue and Upper Fifth Avenue, where asking rents continue to climb,” said Patrick A. Smith, vice chairman, retail bokerage JLL New York.” What's particularly encouraging is that demand remains broad-based. Luxury brands continue expanding along Fifth and Madison Avenues, with experiential retailers and fitness concepts driving larger transactions in other markets, and continued demand from restaurants and entertainment operators.”
Looking ahead, JLL expects leasing activity to remain healthy as retailers continue prioritizing locations that are commensurate with their brands and drive customer engagement.
“With availability in the prime shopping districts at historic lows, well-located storefronts should continue attracting strong competition and support stable to rising rents,” Smith said.
Lease Signings
Below is a list of significant retail leases signings in the second quarter of 2026 from the JLL report.
Tenant Address & Area Square Feet
•Chelsea Piers Fitness 250 Water St., Seaport 76,000
•Life Time Inc. 83 Wythe Ave N, Williamsburg 71,000
•Atria Health 500 W 18th St., Chelsea 52,000
•Ulta Beauty 1551 Broadway, Times Square 26,000
•Purple Style 601 Madison Ave., Midtown East 23,783
•Bar des Prés 345Park Ave., Plaza District 22,000
•House of Spells 234 W 42nd St., Times Square 19,500
•Aritzia 10 Columbus Circle, Columbus Circle 16,000
•Ideal Marketplace Grocery 341 9th Ave., Chelsea 14,770
•Stout 373 Park Ave S. ,NoMad 13,890
Coach (relocation) 645 Fifth Ave., Upper Fifth 13,200
•Avocado Mattress 942 3rd Ave., Midtown East 12,036
•Barnes & Noble 181 Avenue A, E Village 11,300
•Kitchen & Kocktails 7 Times Square, Times Square 10,519
