Midtown's Storefronts Are 30% Vacant: Highest In NYC, Study Finds

MIDTOWN MANHATTAN, NY — New York City's much-discussed pandemic comeback hasn't quite arrived in Midtown, where once-thriving retail corridors sit largely empty, according to a new study.

The report by the Real Estate Board of New York surveyed storefronts along Madison, Park, Lexington and Third avenues between 39th and 57th streets — a grid that researchers described as "office-dependent," for its reliance on the neighborhood's office workers as a customer base.

Of the 311 total storefronts in that area, 93 were unoccupied as of this summer — a whopping 29.9% vacancy rate. That included 15 vacant corner storefronts, which are typically in high demand.

The same report contrasted Midtown's high vacancies with more residential neighborhoods in Brooklyn and Queens, whose vacancy rates were both around 14 percent.

"With vacancy rates well below 20%, it is clear that retail in these local, service-oriented retail trade areas has enjoyed stronger foot traffic," the report reads.

The Midtown area surveyed includes the Grand Central and Midtown East sectors, chosen because their retail businesses were especially profitable pre-pandemic. In those prosperous years, businesses in that area of Midtown accounted for $6.5 billion in annual sales — more than 11 percent of Manhattan's total.

"It’s clear from these findings how critical the link is between the recovery and success of the City’s once vibrant retail sector and a full, safe return of office workers," REBNY President James Whelan said in a statement. "The health of the retail sector plays an essential role in New York City’s full economic recovery."

As part of the study, REBNY — a major lobbying group — laid out a number of policy recommendations, asking the city to issue more aggressive vaccination mandates and encourage employers to bring workers back to the office.

Read the full REBNY report here.

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