Flatiron Retail Market Shines as Manhattan’s Recovery Gains Traction

Retail momentum was evident in the second quarter, with eight leases signed in the Flatiron/Union Square area totaling nearly 59,000 square feet. One of the quarter’s largest Manhattan deals was Uniqlo’s 19,250-square-foot lease at 860 Broadway. Despite some large vacancies — including 16,600 square feet at 19 Union Square West and retail space at 281 Park Avenue South — demand remains high, especially on Broadway between 14th and 23rd Streets, where asking rents have jumped 9.1% year-over-year to $369 per square foot.

By contrast, Fifth Avenue saw a 10% decline in asking rents, likely due to higher-priced spaces being leased and removed from the market. Still, the overall Manhattan retail market appears stable, with availability down 37% from its 2021 peak and quarterly leasing velocity increasing to 3.9 million square feet. CBRE’s Hiro Imaizumi noted that high costs are lengthening decision-making timelines for retailers, but new tenants entering the market are helping rejuvenate activity.

Adding to the optimism, foot traffic in the Flatiron is trending upward. Out-of-market visitors to the district rose 3.5% year-over-year in June, placing the neighborhood in the middle tier among top retail destinations in Manhattan. With a healthy mix of new leases, reduced vacancies, and a dynamic tenant mix, Flatiron continues to lead the way in Manhattan’s evolving retail landscape.