Availability across New York City’s prime retail corridors fell to a record low of 11.9% in the second quarter of 2026, according to JLL’s Prime Market Statistics report released this month. The figure is the lowest quarterly rate since tracking began in 2017, with the total count of available prime spaces dropping to 164 — down 24 quarter-over-quarter and 31 year-over-year.
SoHo posted a new record-low availability rate of 8.0%, while Union Square/Flatiron recorded the largest quarterly decline in vacant space, falling to 11.1% from 14.2%. Average asking rents across prime submarkets rose to $592 per square foot from $585 in the first quarter, approaching the post-pandemic peak of $608 set in Q2 2025.
The data reveal clear divergence across corridors. Upper Fifth Avenue commanded the highest rents at $2,516 per square foot, up 9.2% quarter-over-quarter, with availability at 11.4%. Lower Fifth Avenue saw asking rents jump 10% to $839 per square foot. SoHo rents surged 17.4% to $386 per square foot amid the tightening supply. Madison Avenue held steady at $890 per square foot with a low 8.0% availability rate. In contrast, 34th Street/Herald Square posted the highest availability at 35.2%, while Times Square availability stood at 22.1% despite a 9.0% quarterly rent increase.
Major lease signings underscored resilient, if selective, demand. Chelsea Piers Fitness took 76,000 square feet at 250 Water Street in the Seaport, while Life Time signed for 71,000 square feet at 83 Wythe Avenue in North Williamsburg. Atria Health leased 52,000 square feet in Chelsea, and Ulta Beauty committed to 26,000 square feet at 1551 Broadway in Times Square. Other notable deals included Purple Style’s 23,783-square-foot lease on Madison Avenue, Coach’s relocation to 13,200 square feet on Upper Fifth Avenue, and a mix of restaurants, grocery, and experiential concepts across multiple submarkets.
Patrick A. Smith, Vice Chairman of Retail Brokerage at JLL New York, said landlords are regaining leverage as quality space grows scarce, particularly along SoHo, Lower Fifth, and Upper Fifth, where rents continue climbing. Demand remains broad-based, he noted, with luxury brands expanding on Fifth and Madison Avenues, experiential and fitness operators driving larger transactions elsewhere, and sustained interest from restaurants and entertainment users. Corridors such as Herald Square and Times Square continue to recalibrate tenant mixes, he added.
Looking ahead, Smith expects leasing activity to stay healthy as retailers prioritize locations that align with brand positioning and customer engagement. With prime availability at historic lows, well-located storefronts should continue drawing strong competition and supporting stable to rising rents.
The Q2 results extend a multi-year recovery trend in which annual average prime availability has fallen from 21.4% in 2019 to 12.8% in the first half of 2026, reflecting sustained retailer interest in high-traffic, high-visibility New York locations despite elevated rents in the city’s tightest submarkets.
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