New York, NY Retail Market Report Q3 2026

2019 Delivery Peak Fades 93%; Vacancy Edges Down to 4.0%

Demand

New York City absorbed 886K SF in Q3 2026, against -153K SF in the same quarter last year. Vacancy is 4.0%, 29 bps tighter than Q3 2025. Hudson County is the tightest submarket at 2.0% vacancy; Rockland County leads rent growth at +1.2%. Trailing-12-month absorption of 992K SF compares with -491K SF a year earlier. Asking rent of $54.76/SF is up 0.6% year over year and within 1% of the Q2 2026 peak of $54.94/SF.

Supply

New York City delivered 51K SF in Q3 and 278K SF over the trailing twelve months (-39% versus the prior TTM period). Space under construction equals 0.3% of inventory, concentrated in Bronx at 0.7% of its stock. Annual deliveries peaked at 4.13M SF in 2019. The 1.12M SF pipeline equals about four and a half quarters of absorption at the trailing pace.

Investment Market

New York City recorded $5.4B in sales over the trailing twelve months, +31% against the prior TTM period; Q3 accounted for $1.30B. The high-water mark in this series is $6.1B in 2018.

New York City cap rates average 6.08%, up for 19 straight quarters. Pricing sits at $599/SF, higher for 16 consecutive years. The cap rate is 64 bps above the Q2 2018 low of 5.44%. Price per SF is at a record.