What does the future hold for New York City retail?

As we dive into the holiday season, the question of where you’ll do your holiday shopping is looming for many of us. In a city like New York you would expect that you could find nearly anything you want at a local store – but with retail vacancies running about 20% throughout Manhattan, particularly in heavily trafficked areas, we’re left wondering what is going on with retail and what will the future look like for New York? 

City Council has reintroduced the Small Business Jobs Survival Act leading many to ask why are we losing the small businesses that make New York neighborhoods so vibrant and attractive to live in, and will this bill address the issues at hand? To some extent we are facing the imminent effects of online shopping on neighborhood retail spaces, but the growth of retail in the outer boroughs begs the question of whether raising rents in Manhattan are to blame. Throughout the city retail tenants blame landlords for raising rents, holding out for national chains with deep pockets, but property owners don’t benefit from empty storefronts and have very little incentive not to cover the costs of their investment. 

The vibrancy of New York City neighborhoods is in its diversity and the confluence of high-end retailers and small businesses – becoming a cookie cutter city is one of the concerns cited by Council Speaker, Corey Johnson. Some argue that the bill creates rent control that will have significant negative effects on the economy, while others do not believe that the bill will be able to achieve its goals and should evaluate alternate options. 

As New Yorkers and real estate agents we are constantly watching the city change following the natural progression of evolving consumer habits and preferences – and as the city adapts the landscape changes. While it’s exciting to explore new shops and restaurants there is a sense of nostalgia for favorites that have come and gone.