Overview
- Industry leaders at ICSC New York reported active deal-making and continued expansion plans into 2026–27 despite macro uncertainty.
- New York data show tightening supply: more than 3M square feet leased by September pushed vacancy near lows, prime-corridor availability fell 7% quarter-over-quarter, and leasing velocity rose 43% year-over-year.
- Top luxury corridors are setting the pace, with Upper Fifth Avenue asking rents above roughly $2,200 per square foot and Madison Avenue availability declining over the past year.
- Landlords are holding out for preferred tenants and top centers report waiting lists, reflecting near–record low availability nationally.
- Retailers are adapting formats to secure locations, exemplified by IKEA’s far smaller Manhattan stores, while weaker corridors like Herald Square face high availability and may rely on concessions; affluent spending continues to drive demand as tariffs weigh more on some hard and soft goods categories.