Following a city-wide trend of shrinking store formats, the average size for ground floor available retail space decreased in nearly all the prime submarkets tracked in the first quarter of 2018, according to JLL Research in New York. The lone exception was in Lower Fifth Ave, where it remained the same.
It appears that this change could be a response by landlords to accommodate the needs of tenants, who are interested in “doing more with less” by incorporating technology and leasing smaller blocks of space. The most drastic change occurred in the Times Square corridor, which saw its average store size decrease by 23.6% quarter-over-quarter.
We will follow this trend into the second quarter of this year, as the retail relm continues to adjust to the growing pains of online shopping, catering to shoppers ever-changing preferences and needs.