Soho, one of New York's largest and trendiest shopping districts, seems to be as busy as ever. During weekends, retail stores along Broadway and West Broadway, are teeming with New Yorkers and tourists. But behind the robust activity, numbers reveal that retail vacancies in the neighborhood are on the rise.
In recent years, Soho has gained a lot of attention from tenants due to the rising number of available storefront spaces. However, the situation has not improved. According to data from CoStar Group and Agorafy databases, Soho is currently at a retail crossroads as vacancies in the neighborhood accelerated.
Data revealed that by the end of 2015, at least 95 properties are listed as available, totaling nearly 500,000 square feet of retail space. The said availability is mostly located on Broadway and West Broadway. Others are on Wooster, Spring and Greene streets.
Last year, the availability rate has grown by 20 percent in the third quarter in comparison to the same quarter in 2014, according to the Manhattan Retail Market Report published by Cushman & Wakefield. Last year's rate recorded as the biggest year-over-year jump of any Manhattan neighborhood being tracked by the firm.
Moreover, they highlighted that the numbers have been consistently rising over the last few years. In the fourth quarter of 2013, the retail availability rate in Soho was at 12.2 percent, a huge increase from 8.8 percent in 2012.
Sources asserted that the rising retail vacancy rate was caused by rising rents as asking retail rents in Soho have been rising year after year. In the third quarter of 2015, tenants have been paying $535 per square foot from $470 square foot in 2014.
Aside from the expensive rents, retail experts are convinced that a combination of factors have made the situation worse. They noted that several tenants from the south and west of the neighborhood have migrated, closing stores by big national brands.