Manhattan\u2019s retail pain is worsening as the pandemic drags on, with rents falling in every major shopping district.<\/p>\n
Soho was hit the hardest in the fourth quarter, with average asking rents dropping nearly 22% to $290 a square foot, according to a report by brokerage Cushman & Wakefield Plc. Rents in the area, known for its many fashion boutiques, have been sliding over the past four years.<\/p>\n
Asking rents tumbled 20% on lower Fifth Avenue — running from 42nd to 49th streets and dominated by big national chains. Upscale Madison Avenue saw a 16% decline.<\/p>\n
Manhattan\u2019s retail woes have intensified over the past year as social-distancing measures and Covid-19 spikes continue to keep shoppers home. Few businesses are looking to expand, and many have closed, leaving the city with swaths of empty stores.<\/p>\n
Read more: As NYC Staggers On, Cost to Lives and Livelihoods Keeps Rising<\/p>\n
The supply of space is surging in most areas, with availability rates in key districts such as Fifth Avenue, Soho and Meatpacking at 24% or higher, according to Cushman. Madison Avenue, from 57th to 72nd streets, had the highest availability rate for the second straight quarter, reaching almost 40% at the end of the year.<\/p>\n
The only submarkets that had a decline in available space were Herald Square\/West 34th Street — home to the flagship Macy\u2019s department store — and upper Fifth Avenue, running from 49th to 60th streets and famed for its luxury merchants.<\/p>\n
One of the biggest leases in the quarter was by Target Corp. for a a 27,600-square-foot store at 600 Broadway in Soho.<\/p>\n