Manhattan Retail Report Q1 Highlights Ongoing Recovery

The Real Estate Board of New York has just put out its first-quarter report for Manhattan’s retail sector, and, unsurprisingly, the main takeaway suggests that retail is bouncing back robustly.

Additionally, while not part of REBNY’s analysis, WWD has reported that the luxury jeweler David Yurman is set to open a flagship store at 685 Fifth Avenue, which spans about 22,000 square feet. This space is currently occupied by Coach, which is planning to relocate to 645 Fifth Avenue later this year.

This development aligns with what Steven Soutendyk from Cushman & Wakefield mentioned a few weeks ago, indicating that many of the currently vacant big-box stores on Fifth Avenue are nearing deals, potentially to be announced by year’s end. By the way, Soutendyk wasn’t involved in the contracts with Yurman or Coach.

Here are some notable trends from REBNY’s findings:

• Bleecker Street has only one small store in a prime spot between Seventh Avenue South and Hudson Street, influencing a shift of retail towards nearby options like West Street.
• On Fifth Avenue in Flatiron, new brands are finding it an appealing location to establish themselves in the city. For instance, Canadian brands Garage and Cozy have taken over the old Club Monaco spot at 160 5th Street.
• Madison Avenue, particularly north of East 57th Street, is thriving with demand from Italian fashion brands, resulting in very few store openings. Consequently, Milan-based LDJ (La DoubleJ) is setting up shop on nearby streets and filling an entire townhouse at 18 East 69th Street.

• As noted earlier, average asking rents in Herald Square have risen from $383 in the latter half of 2025 to $412 currently, driven by heightened interest from larger retailers, such as the 40,000-square-foot TJ Maxx in Herald Towers.
• Times Square continues to attract a variety of businesses beyond entertainment, including Nanshan Dumplings, which took over the former TGI Fridays at 147 W. 46th St.

However, the report comes with some clear limitations. For instance, REBNY’s “corridor trend” overlooks busy areas like Midtown’s 6th Avenue.

Some larger and more visible retail spaces, like the old Gap location at 1212 Sixth Avenue between West 47th and West 48th Streets, have sat vacant for years, despite landlords reaching out to some of the city’s top retail brokers for potential tenants.

Moreover, REBNY’s analysis does not cover Fifth Avenue between East 34th Street and East 42nd Street. This raises some skepticism about the likelihood of a retail lease recovery, especially given that much of Fifth Avenue between 38th and 39th Streets remains empty, directly across from the former Lord & Taylor store and the newly opened Shaver Hall food court.