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Record-Low NYC Rents Spur Restaurant Resurgence

Apparel retailers also making most of dropping space costs.

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Local restaurants in Astoria Queens, were busy attending to customers sitting under umbrellas or awnings outside of their establishments, following the rules of the second phase of reopening in New York City.

Food and beverage (F&B) tenants, many hit hard by shutdowns during the pandemic, have been among the most active businesses signing retail leases in New York City during the second quarter, reports CNBC. Dataessential, which tracks F&B sector activity, found that of a total of about 779,000 restaurants in the U.S., a full 80,000 have closed permanently since March 2020.

In Manhattan, restaurant chains signed 23 new leases during the second quarter, totaling 83,333 square feet of space, according to commercial real estate firm CBRE. Apparel retailers, also impacted by the work-from-home culture that’s emerged recently were the second most active, signing 10 new leases totaling 49,236 square feet.

Average asking retail rents fell 10.7 percent year over year to $615 per square foot, posting the lowest rates in almost a decade, according to CBRE.

Jennifer Acevedo is the editor-in-chief and associate publisher of VMSD magazine.

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