Retail Leasing in Midtown South Growing Faster Than Rest of Manhattan: Report

Retailers in Midtown South were some of the hardest hit during the pandemic, with more than 450 storefronts closing, but now the area is bouncing back thanks to a retail leasing surge.

That surge is due in part to the Midtown South Mixed-Use rezoning plan passed last year. The development blueprint covers the area roughly from East 42nd Street to East 30th Street, and from Avenue of the Americas over to Eighth Avenue.

Storefront vacancy in Midtown South has declined 19 percent over the past two years, outperforming Manhattan overall by 41 percent, according to a new report from Live XYZ, a mapping and analytics firm that shared its findings with Commercial Observer.

Momentum is strongest in the restaurant sector of Midtown South, which Live XYZ refers to as “42Below,” with 71 new openings and just 37 closings over the last two years, the report showed. 

Food and beverage as a whole — which also includes coffee and tea shops, dessert spots, and juice and smoothie bars — has grown twice as fast in Midtown South compared to the rest of Manhattan. The growth rate over the last two years was up 16.1 percent in Midtown South, versus just 6.7 percent for Manhattan. 

“People are looking for the local economy to give them things that they can’t just go buy on Amazon,” Chris Bradicich, director of partnership and growth at Live XYZ, told Commercial Observer. “There’s been a shift on an overall macro cycle in the local economy toward these more experiential businesses: food, drinks, entertainment, and other forms of experience.” 

Some recent and upcoming food and beverage openings in the area include French restaurant Fauchon at 2 Bryant Park, Japanese eatery Sushi 35 West at 232 West 35th Street, and vegetarian outpost Olio E Piu at 5 Bryant Park. 

Shaver Food Hall, a 35,000-square-foot dining destination in the former Lord & Taylor building at 424-434 Fifth Avenue, will also open later this year. And Japanese restaurant Sora is coming to the Midtown South area at 1370 Broadway.  

In August 2025, a rezoning plan was adopted in Midtown South that will allow for the creation of about 9,500 new homes — 2,800 of which will be permanently affordable — in an area where residential development was previously not allowed. 

“As new residential developments come online and office conversions advance through the pipeline, retailers are taking space, renewing leases, and re-entering this area of Midtown with concepts designed to serve residents, workers, and visitors throughout the day and evening,” Robin Abrams, vice chairman at Compass, said in the report.

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.