Tired of Seeing Empty Storefronts? There may be an end in sight. Since the peak of the retail market in 2014, current average rental prices have dropped 23%. During the boom in 2014, the landlords had the upper hand in the market with leases signed at an average of 98% of the asking price, compared with an average of 82% today. From 2010 to 2014, retail asking rents increased by more than 100% among the submarkets studied, while brick-and-mortar retail sales increased by 36%. That means retailers were being offered leases almost three times more expensive than the growth their stores could support, and they were largely taking them because the environment was so competitive. However, the current difference in asking rents and retail revenue is comparable to 2011, which could mean the market will soon be back on the rise and gaining stability in the near future.

The increase in storefront vacancies has been noticeable on the Upper West Side over the last few years, creating a hot-button political issue. Mel Wymore, while running for City Council, mapped out 130 vacant storefronts on the Upper West Side, accusing incumbent Helen Rosenthal of protecting a system that protects landlords instead of business owners. Manhattan Borough President Gale Brewer tallied nearly 200 empty storefronts on Broadway in June, highlighting the issue with the intent of “rejuvenating our streetscapes.”

If the 2011 trend is indeed an indication of the current retail market, we should expect to see signs of an uptick in the coming months and years, with fewer "for rent" signs on every block. Follow me on social media to stay updated on this issue and more on the Upper West Side market.