In what retail landlords hope is a turning point, the average asking rent in the prime 16 retail corridors of Manhattan saw a quarterly uptick of 2.2% to $607 per SF—the first increase after 18 consecutive quarters of decline, according to CBRE's Q3 report for Manhattan's retail market.

The sudden pulse in average asking rents—the first increase since 2016—came as Manhattan's prime corridors saw reduced vacancies in Q3. Direct ground-floor availabilities dropped 5%, from 241 to 229 spaces—the fifth consecutive quarter that the number of direct ground-floor availabilities tracked across Manhattan's corridors has declined.

CBRE reported that the taking rate index for the prime 16 retail corridors in Manhattan jumped for the second consecutive quarter in Q3 to 72.2%, up from 69.5% in Q2 and at its highest level to finish a quarter since Q3 2019.

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